Borrowing up to £150,000 unsecured - is it possible?

Discussion in 'General Chat' started by johnnyhungus, Mar 8, 2006.

  1. johnnyhungus

    johnnyhungus
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    I am looking at a possible management buy out of the company I work for but do not have any security to borrow money against. The company is well established over 22 years and I have been here nearly 13 years and am very familiar with the way the company works, I run it mainly.

    My boss is ready to retire and has offered me first dibs at buying the company. The first hurdle I have is obtaining up to £150,000 unsecured - a big thing to ask by any stretch of the imagination and so far, banks are not interested.

    Can anybody offer some simple advice on possible sources of funding? Has anybody actually done something like this?

    I am reasonable savvy with the business side of things and am already talking to Business Link, accountants and some financial advisors.

    Any practical advice is appreciated.

    TIA
     
  2. Mep

    Mep
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    Can't you use some of the equity of the business that you would be buying as collateral?
     
  3. Bat-man

    Bat-man
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    Unsecured loans max £25 000.00
     
  4. hornydragon

    hornydragon
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    I suggest you PM Ian J who is an expert in commercial finance
     
  5. Astaroth

    Astaroth
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    It would be a business loan not a personal loan so it is possible. My boss borrowed £5m to do a management buyout and certainly didnt have that sort of collateral to secure the loan against.
     
  6. Knyght_byte

    Knyght_byte
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    if profits have been steadily rising over a fairly decent number of years and the market you are in isnt volatile, then there is a good chance they will say go for it, have the cash, especially if once you own the business there are some assets they can take away if you go bust to cover their losses, either location or equipment or stock or even tradelinks can be enough......the key is to get them to realise that you will make sure profits increase steadily but without a risk of damaging the businesses reputation...(the surest way to kill a company quickly, jump in on a plan for major quick profits to show off to the investor but fail to see that long term this could cripple you in some way.....)

    what you might want to do is invite employees to be investors, im sure a bunch of them have homes they could remortgage or secure loans against.....get them to invest the money, they get a steady return from the profits (dont give them shares...heh then they pwn you!...lol) and once they have gotten back what they invest, plus say 50% bonus over a period of time then you'll have the company, hurrah :)
     

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