if i am thinking of starting a business

[lorne]

if i am thinking of starting a business would this effect me if i need help getting a business loan or any finance

would i beable to get a mortgage with out a high deposit

[Storm]

Yes - you are unlikely to get a business loan whilst in an IVA.

Depends what you call high - you will need to find between 10-15% deposit

[Aaron]

Hi Lorne, I think it depends on what legal structure your business is...Sole Trader, Limited Company etc. If you are a sole trader you probably wouldn't be able to get a loan, but I think you might be able to with a limited company because the liability with with the limited company and not you...I'm not 100% sure on this, but I'm actually looking in to setting up a company myself, but not needing any loans/credit. As for mortgages you can get 100% mortgages and possible more, but again depends on your status and also you will now have to deal with sub-prime lenders....check out www.moneyfacts.co.uk. I did look in to this recently too and think that it might be possible to get a mortgage, but it would have to probably be within your budget - ie if you're paying rent then would the mortgage repayments be more than this...best to talk to your IP.

[Aaron]

Have a look at this link...think I am right on the liability being with the limited company, but a creditors might ask for personal guarantees in the early days of a company...http://www.hsbc.co.uk/1/2/business/need ... :11j4mhb59

[Storm]

In my experience Limited Company borrowings are guaranteed against either the security of the company or the directors - usually both.

Whilst in an IVA you are likely to experience problems opening a bank account as a limited company never mind borrowing money for the business.

Again in my experience applicants in an IVA would not get 100% mortgages - 85% to 90% max.

[MelanieGiles]

Storm and Aaron are quite correct. Any lender to a limited company will check out the creditworthiness of the directors and most likely ask for guarantees. If you do give any sort of personal guarantee whilst in an IVA, you must inform your Supervisor as you are effectively creating a contingent liability.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk