Well, the meeting with my business consultants was interesting! Before I had even told him any part of my idea he was already telling me about how to sign off on what benefits I would get after I signed off.
The business consultant is not a mentor.
I pushed my chap quite hard on what help and assistance I can expect from him from being a business consultant., basically there’s none. They can’t guide you all won’t guide you on Best business practices and they are there more to bounce ideas off of rather than helping your business.
Basically once he has signed off your business plan that’s going to be the last you hear of him.
As I said in my previous post the line is provided by a company in London he will only issue alone to you if your business consultant has signed off on you.
The loan amounts should vary from 6% to 10% and my “consultant” trying to tell me it would be a flat rate of 10% until I pointed out I done my research and visited the company’s website.
All of a sudden my rate was discussed at 6%.
The loan is given to you over a period of three years, year one is interest only and then the next two years you pay back the full £2500.
What the floor with this system is that you don’t get all all of the loan upfront, instead it’s a staged system of increments of £500. This in itself presents a huge problem because in the first month you have all your associated setup costs. Even the very basics of registering as a sole trader along with the most basic of insurance is going to see the best part of that initial 500 gone.
Once approved your jobseeker allowance takes a nosedive.
Right now I am on £70.15 p per week. When I get approved for the loan that then reduces down to £60 per week. Oh and just because I’m approved doesn’t mean I get the money straight away, that can take an additional four weeks.
So for six weeks I get £60 per week and then the next six weeks I will get to £35 per week and then that’s it.
On average I would say you could just about live on 1000 times per month to cover all of your bills and living expenses. Let’s say you work at the rock bottom margin level of 10% (why would you) that means you’re left having to at least 10,000 pounds.
What they don’t tell you.
Will your housing benefit be affected?
If you are self employed how will it affect any housing and council tax benefits you get?
Again if we work at the rock bottom baseline of 10% profit, I would have to turn over £4000 a month just to be able to pay my rent and council tax