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gooner

Just interested.<br /><br />Due to a lot of problems we've been living on a severely low income and so haven't been able to keep up repayments on our credit cards, loans etc As a result our credit rating is destroyed. We've been to CAB and are making token payments to our creditors which is all we can do right now.<br /><br />We keep being told that way out of financial problems and the career dead end my other half is in is to set up our own business and work for ourselves. However as we have no capital, and I presume no bank would advance a business loan to someone with a bad credit rating, this would be an impossibility (short of a lottery win). My partner was even refused a Career Development Loan because of our credit rating.<br /><br />Just interested in case there are any ways around this I might not be aware of.<br />

Tiger

Form a Ltd company with the name of different people as directors,for example your mum or your dad as the directors of the company, who don't have a bad credit history, but the share holders will be you and your husband. There is no guarantee if the bank will allow you facilities, but depending on your business and the bank manager, this may work.

DrTrade

I personally can't see how you will do this - if you are in as much debt as you claim no one will give you credit.

There are companies/loans out there that may give you a loan but at a huge amount of interest to pay back, which I would advise you against....you wouldn't be able to maintain the payments due to your current circumstances.

What work do you do? There is work out there you may be able to do with (initially) very little expense - cleaning, domestic....this can become quite lucrative if you both set your minds to it.

Alex3

You may not want to start a business until you are back on your feet to some extent. The failure rate of new businesses is EXTREMELY high, but this is normal.

One statistic (and who knows how accurate it is) reported that people who run successful businesses first failed an average of three times before their successful one.

If I were you I would not take out MORE debt at a time like this. Instead, work out payment plans with your creditors, BUDGET your income, and just focus on paying as much back as you can. Eventually you will get back to some form of stability, and only then should you think about taking out a loan for a business.