Do I really need that loan to start-up?


AM Total Business Solutions Ltd -

By Angela Morris

Do I really need that loan to start-up?

Starting a new business and getting a start-up  loan do not necessarily go hand in hand! There are some types of business that need minimal outlay and that you can do from your own home. It can be challenging to know what to do if there is no-one who knows what to do!


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So how do you know if you need a start-up loan or additional finance to get your business off the ground? My special guest this week is Serial Entrepreneur  and Author, Romeo Effs, Cass Business School Alumni and an Ambassador for start-up funding.  Romeo was a former Accenture executive and  worked for  Rosslyn Analytics as Director of Client Development. There is very little he doesn’t know about SMEs and start-ups!

I asked Romeo to provide some nuggets for my readers so here he explains:

3 reasons you may need a loan:

  1.  You are going to use expensive equipment e.g machinery
  2. You need specialist training i.e you will have to be certified
  3. Keeping stock is essential e.g. food for a restaurant

So far so good?

Next question is  how much should you borrow?

This can be a little tricky but here are 3 points to consider:

  1.  Make sure you borrow enough money. If you “under-capitalize” this could create problems for you along the way!
  2. Factor in at least 1-2 months working capital as you may have to wait for invoices to be paid to you, sometimes up to 3 months!
  3. Always put in a back-up contingency percentage of say 10% (if you were to borrow £10,000 then an additional £1000 would be your emergency amount) just in case things don’t go to plan!


Romeo and I

If you have read this far then you are rewarded with an invite to join me for an free  exclusive evaluation session with a  start-up  fund “approver” on 20th May 2014 at 11.00am which will be held at my offices  in Croydon. Please fill out the details below in order to register.  Why not come along?    Because….


“Life’s Too Short”


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Do I really need that loan to start-up? was originally published on Angela R Morris – Total Business Solutions

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