Business loans? new start up

Hello

Myself and family have set up a small ltd company primarily to supply consumables to the catering industry. We have invested 25k and are seeking another 50k to start up. We have already applied with full business plan and accountant verified cash flow to the AIB business
banking. They have been procrastinating and have the plan for the last two months not returning calls etc. Our family have been banking with them for the last 40 years and have an excellent credit record. After an irrate phone call they have approved a loan of 20k which I have to go guarantor on. This seems to me like a personal loan with different interest rates etc.
I am not used to business banking so now we have decided to pursue other banks out of pure annoyance at the delay. What other funding avenues are available? We are seriously thinking about transfering all of our accounts to a different bank, is this a rash move?
Is there a credit freeze going on, and is it wise to take personal loans out to fund business ventures?

Thanks

TSB wouldn't even give us a business overdraft without it being personally secured. We've banked with them for years, and have never been in the red, so it's probably not Irish bank specific.

We ended up finding alternative arrangements. My wife would have no problem securing the loan on her credit card!

Bugsbunny
calm down calm down, first of all, there is no need to transfer all your acoutn and fund from AIB to some other bank. reason, All most all banks are same in this issue. First thing first. all or most of the banks look for a security against the business loan. business plan is necessory in all application of any bank. Ulster Bank also gives loan upto 30k without security and other banks may have same more or less (not sure). You need not transfer your acounts now but later once you are sorted, you can transfer your acounts.
Another way to source money is either remortgage your house (I am doing just that to source 60k for my new franchise business) and if you are very sure of your returns, you can take a car loan or personal loan to start up your self.
I hate few banks but they all are same actually.
Just calm down and take steps accordingly

A very high percentage of businesses fail within a few years. If a bank lends a limited company €50k without any security or guarantee, it is taking an unnecessary risk. Banks are businesses, and not charities. If your business is not successful, you could just walk away from the loan if the bank does not have a guarantee.

The cheapest way to finance a business is to remortgage your home. It will cost you about 5% compared to 10% on most other loans. You can lend the money to the company and get full tax relief on the interest paid.

Brendan

try first step finance, they do business loans

also try www.startingabusinessinireland.com and go to the finance section

many thanks everyone will pursue other avenues

regards

Just to give you a comparison, I run a seven year old company, been with AIb bank for the last 6, turnover more than 7 million euro and never a problem with the bank.

I still have to personally guarantee large leases / financing. (The business is mainly service based so assets are weak)

Brendan said:

The cheapest way to finance a business is to remortgage your home. It will cost you about 5% compared to 10% on most other loans. You can lend the money to the company and get full tax relief on the interest paid.

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Though the downside of this approach is that (depending on the value of your property and the amount borrowed) you are potentially putting your family home at risk to support your business.