Hi,

Where can I apply for funding for starting my own business?

It depends what you sell and what area you are in. There are certain places where you can get free business premises, such as Gateshead.

Short answer: if you can't make money from nothing, then your business will fail.

Long answer: The UK's entire monetary system is based on credit and that's why it has collapsed. If you loan money to make money and the money you make doesn't materialise, then how will you have the money to repay the money you loaned? You won't! You will have stock or another type of commodity you will then have to sell at "give away" prices to get the money to make repayments, then you will find yourself as a "debt slave".

Here's a something that happened to me 4 years ago: we had just started flying to China from the UK and buying bulk. Great, we thought we should advertise our services online as this is a new business to us! We had lots of products and we offered them at wholesale prices in large volume, awesome. So we soon received an email from a person representing a big high street shop. That's the deal we are all looking for, right?

The company tells us that they take large amounts of goods on credit and pay us between 3 to 9 months later. We assumed that this is usual being new to this game ... this order is money in the bank, right?

So we thought, we would have to take a bank loan to pay for the huge amount of goods that would be ordered. The "big" company would officially order the goods from us, which would secure the loan and we would need to fly to the factory to oversee a large order from start to finish "cos that's how we roll".

After our ship had come in, we emailed the company back and told them that only we had this particular product (which at the time was true) so we offer NO credit and if they want the goods they would have to pay for the goods to be manufactured then settle the balance upon them receiving them, they emailed us back saying "but that's not how big companies do business" or something to that effect. A few days went by and we thought "Have we shot ourselves in the foot here?" The days turned into a month and then I was drinking my morning tea and reading the news one morning, guess what? The "big" company had gone under and was closing! What does this mean to me? Well if we had taken out the bank loan we would have owed the money to the bank t he company that took the stock on CREDIT would have gone out of business, which would mean our stock (to the best of my understanding) would then be sold off by liquidators to pay off the company's outstanding bills! We would be entitled to receive 10% of the value of the debt from the liquidated assets, so basically we would have to pay the bank the initial loan we took to manufacture the goods even though we would only receive 10% of the debt from the company that had them. This to us would have meant we would also have been bankrupted!

Credit is bad!

Quote:

Originally Posted by heddle21999

Hi,

Where can I apply for funding for starting my own business?

If you have a specific business plan, you can apply for funding from your bank. Show them that you are able to make money.