jilla411 Posted July 27, 2011 Share Posted July 27, 2011 I was looking at buying an existing business over in Australia.I have been to the westpac bank today and because the only collateral that we have is our UK property they will not be able to loan us the money .My partner works full time and earns around $100000 per year ,we were willing to put $15000 down and get a loan for the rest.Is there any other way around this . Regards Link to comment Share on other sites More sharing options...
Guest AberdeenAngus Posted July 27, 2011 Share Posted July 27, 2011 There's a saying that the way to raise capital for a business venture is via...."Friends, families and fools". Banks don't work on trust. They don't know you - so if you can't back up your loan with collateral then you are going to be struggling with them. If you keep trying, you may find one that is willing to back the venture based on the strength of the existing business. Don't be put off by the first refusal. I know folk that visited DOZENS of banks before getting the funding they needed. An alternative is venture capitalists ( or 'Angels'). They will be willing to take more of a gamble but want a larger return in exchange - ever seen Dragons Den ? Do a web search for venture capital groups operating in your area. They often hold investment parties where you get the chance to 'make a pitch' to potential investors. If neither of the above are appealing - so what is left.....Friends, family and fools. Forget about Fools - you don't to rip anyone off. So you are left with Friends and Family. In other words people who know you and are willing to invest in 'YOU' and not just the business idea. Also, if it's people you care about you would be letting down - you are going to be so much more motivated to make the business work. It also makes it more risky. Even good businesses fail through no fault of the owner. If this was to happen could you sleep knowing you lost your mate's money ? Angus. Link to comment Share on other sites More sharing options...
Guest Home Loan Experts Posted July 29, 2011 Share Posted July 29, 2011 With no Australian property as security you would be unlikley to get finance for a business. My recommendation would be to approach a UK bank and borrow using your property there to fund the business here. Not easy, however you have a better chance that way. Link to comment Share on other sites More sharing options...
jilla411 Posted July 29, 2011 Author Share Posted July 29, 2011 Thanks we have all ready thought of that ,but that would mean re-mortgaging our current home and we have a very favourable mortgage at the moment,also the transfer over would mean that we would lose thousands due to the strength of the Aussie dollar. Link to comment Share on other sites More sharing options...
Parley Posted July 29, 2011 Share Posted July 29, 2011 I think it would be very hard to get a loan like that. If you have no security at all to put against the loan, why would any bank lend to you. If the business fails, the bank would have no recourse. A new business is by nature a risky enterprise and not to be entered lightly. Link to comment Share on other sites More sharing options...
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