Hi kapap.

There's nothing to be lost by trying, but I'm afraid you'll probably find it extremely hard to raise finance in this way while you remain in a trust deed.

Hi kapap

I think TDA is correct as the trust deed will almost certainly hinder any finance in relation to setting up a new business.

There was a post earlier asking why in sequestration the individual was discharged after 12 months and this was to lift restrictions and encourage business, yet it would still call at the first hurdle with the credit restriction.

Best advice is to approach the banks and see what they say.

Mark

Hi kapap,

I was at an event this week where an advisor from the RBS spoke about lending to small businesses and start-ups.

He advised that the RBS are trying to lend more to small businesses and start-ups. He said that they wanted to see a good business plan but not something that ran onto 50-100 pages as they would never actually read all of that as it takes up too much of their time. Short and straight to the point worked for him and his team.

He also advised that in the past if they rejected you for finance that would be it, they wouldn't give you any further help. Now they try to direct you to other schemes where finance can be provided i.e. government schemes and grants.

There is obviously the issue over your active Trust Deed which I suspect will have a big impact on your ability to secure finance. I guess from a banks perspective, you've experienced financial difficulties in the past and will be seen as more of a risk.

You could also look at Business Gateway and other similar schemes for start-up businesses.

No harm in approaching the banks for advice. If you do, please let us know how you get on.

Thanks to all for replying.
I am going to approach my bank, which happens to be RBS, and I will let you know what happens.
However, am I allowed to take a loan? I think I remember being told when I started my trust deed that I was not allowed to take a loan of more than £500?

Hi kapap.

You're allowed to take credit.

Sourcing it and repaying it are the challenges.

The formal limits on taking credit only apply to sequestration, nit trust deeds. However, even if you can find someone willing to give credit, how you would repay it is going to be the difficult part. Typically it can take some time before a new business becomes profitable and any disposable income you currently have should be being paid to your trust deed.