The coronavirus pandemic is the worst crisis we have faced for over 100 years and it has created challenges for all of us.
I try and take the positives from any situation I find myself in and for me this pandemic has given us a chance to push the ‘reset’ button on our lives. It has allowed us to find ourselves, realise what is important and start to do the things in life that we have always wanted to do.
In recent weeks, I’ve seen a lot of people become self-employed and start a business, following redundancy. It is a big risk to take for anyone. It involves coming out of your comfort zone, coming away from the security of a regular job, unregular income etc.
Nevertheless, starting a business can be incredibly exciting, thrilling and very self-fulfilling. It can also bring many advantages, such as working your own hours; spending more time with the family; calling the shots; allowing you to pursue your passion and ultimately do something that makes you happy.
Following our passions and doing the things we like is what a lot of us will take away from this pandemic.
Many new businesses require finance when first starting and business owners will most likely approach their bank as a first point of call. However, acquiring Highstreet lending can be extremely difficult, especially when the business is new. If you have clients that need less than £25,000, then an unsecured loan option may be their best route.
There are also Government-backed schemes such as ‘Start-Up Loans’. Does your client have savings that can support the venture? However, if the venture requires a large sum of capital, then a secured loan may be the best route.
This is only applicable if your clients owns a property that has substantial equity. Most lenders will go up to 65-70% LTV. Your client may have spent years of their life building up the equity in their property which they can now use to follow that life dream of starting a business.
At Finsec, we typically support all start-ups, regardless of what stage they are at (could be pre-launch stage, buying a lease or recently started trading) and can lend up to £150,000 by way of first, second and third charge. The loan can also be used for any business purpose.
Another great way is Angel Investors, who require a return on their investment.
Nearly half a million new businesses launch every year and I expect lots more to launch as a result of job losses and a more competitive job market.
If your client has reset their life during the pandemic and unfortunately has been made redundant, then why work with them to set up their own business and help them follow their passion?