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Scottish Trust Deed Forum
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Topic starter
27/01/2021 5:00 pm
Hi this is my first time posting here but I read up on these forums quite often so hopefully I can get some help.
I have been in my TD for almost 4 years now and it's due to finish December this year. For the past 5 months I've been out of work as the wife has a new job and I had to leave mine to look after my children. Since then I have spent around 2/3 months researching and building up a plan for being self employed.
I've gone through funding applications and I've built a website etc so it's basically ready to go but I've now hit a few problems.
1) I can't seem to get any insurance quotes for my business and I'm not sure if a trust deed would affect that
2) for the future of my business in the long term is to buy wholesale products and sell them on, trouble is I don't and can't find anyway of funding this because of the trust deed.
So the questions are these: will being in a trust deed affect my chances of getting business insurance that I need and is there anyway of funding a new business that doesn't involve friends, family, or banks etc as they would definitely say no?
Thanks very much!
27/01/2021 5:26 pm
Welcome to the trust deed forum RomeoNX92.
Most people using trust deeds don't have issues accessing personal types of insurance, such as for their home or vehicle. Even so small print should be checked, and open disclosures made, because some personal policies have insolvency exclusions.
Business insurance can be trickier and we've heard from a few people who have struggled a bit to find a suitable policy. I'd suggest contacting an insurance broker that handles lots of business policies to see if they can help you with this. It's obviously important to be open with them about your trust deed from the start.
I'm afraid borrowing is likely to be tough while you're in a trust deed. This is because regulated lenders have to consider the affordability of repayments, and they may perceive that affordability is essentially nil until you've completed the trust deed and been discharged.
Once you have been discharged, and especially if you can demonstrate some positive trading history, there may steadily be more options open to you. The longer ago your discharge the less likely it is that lenders (and suppliers potentially as well I guess) will be put off from providing you with business finance or credit on supplies.
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Topic starter
27/01/2021 7:20 pm
Thanks very much for the quick responses and help!
I'm in the process of waiting for an insurance broker to get back to me about quotes but I'm not sure how it looks. If I don't get the insurance then I'm kind of back to square one.
Thanks for the help!
28/01/2021 11:11 am
I don't have anything to add to what TDA has said, but hope you can get the insurance and funding that you need, RomeoNX92. It'd be good to know how you get on, so that others in your position in future might benefit from your experiences.
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