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Banks won’t lend to startups in the UK, unless secured by assets just like a personal loan. In the UK almost all bank lending is related to the housing market
by randomsearch 8y ago
Banks won’t lend to startups in the UK, unless secured by assets just like a personal loan.
In the UK almost all bank lending is related to the housing market (I read a stat where it’s ~ 95%).
Basically, the banks are extremely risk adverse and only care about rent seeking.
Even if you’re in business and doing well, it’s difficult to get a loan.
- charlesdm 8y agoIf you are actually doing well (not just in your mind), there will be angels that are happy to give you a 50 or 100k loan at 10% per annum. Even in Europe.
- randomsearch 8y agoSure, but I wasn't talking about Angels.
- dnh44 8y agoIn the UK it's pretty easy to get a business overdraft. Although those will come with a personal guarantee from the director(s), they don't need to be secured by any assets.
- randomsearch 8y agoSure, but I wasn't talking about overdrafts.