Ecommerce Funding help pls?

  Uboat 15:16 14 Apr 2010
Locked

Sorry this is my second post of the day BUT this is a much more important one, Myself & my wife have paid a lot of money out & had a Website built for us as we are about to open a online shop selling some of the most luxurious clothing/bedding available, we applied for £1100 which our business manager said was a VERY reasonable amount,

since we lost our jobs 6 months ago we haven't had chance to pick up so we decided this is a chance we would love to go for a online shop, we applied for the grant Via Acorn which is a company funded by the government that offers Grants only! we was told by them & our business manager that what evidence we showed them in our business plan & the website secured a almost certain acceptance for the grant,

BUT we have just a letter notifying us we have been turned down? we are devastated! we had been waiting months... The banks are not lending we don't have any money for stock we are just stuck dead? does anyone know other places we can apply pls.? the Princes Trust was a possibility BUT my wife is 31 she too old & I'm older still?

WE do have a few bits & bobs to sell & we are due to start trading begining of May but as it looks i doubt its been worth all the effort & we dont want to stay on the dole..
Thankx

  wiz-king 19:00 14 Apr 2010

You had no chance with a cost like that, add at least one if not two noughts on the end and you might have been passed. Even if you get stock you would have to turn it almost all over in the first two weeks to get enough money in to pay your suppliers. Most suppliers would want you on 30 day terms, maybe 14 days, in the current downturn. You may be able to strike a deal with your suppliers that they send out the goods for you on receipt of the order, but this adds to the delivery delay. Thats why the sofa/bedding website often quote 5 weeks - they make the stock when they have orders to cut down stock holding.

  Forum Editor 23:25 14 Apr 2010

with which to contemplate starting an online retailing operation selling luxurious bedding - you would need a great deal more than that in order to start trading with any realistic stock level, as wiz-king has pointed out.

It may be that you are not going to hold any stocks, and are going to send your orders to some kind of fulfilment warehouse, but you haven't supplied that kind of information.

The fact that you have been refused a grant/loan of only £1100 is not a very good omen - you would normally expect to negotiate an overdraft facility for that amount with your bank without any trouble at all, provided you have a regular income. Getting money for an online business isn't the easiest thing to do, and I suggest you go back to your business manager and discuss the possible reasons for the refusal.

  Uboat 11:30 15 Apr 2010

Hi guys thankyou so much for the input, Ok the reason we asked for £1100 is becuase our business manager stated thats all we would need to get started seen as we would be based at home & IF we asked for anymore we had less chance of getting accepted due to lack of funding?

we clearly wanted more but was adviced not too apply for it, We have just found out the reason we was refused is because of two reasons them been:
1)The company has ran out of cash as its end of financial year
2) After all we went through we was told they now only support building sole traders & NOT Ecommerce.?

So we are blown out of the water,The product we was going to be selling was unique in that it was only allowed many years ago to be worn by Royal familes around the world & we can get it for 85% less price then anywere else...
Thankx again for your replies!

  spuds 18:28 16 Apr 2010

Not wanting to sound insulting, but hasn't your business manager offered other funding or grant outlets that might suit your needs. One of the Dragon's Den entrepreneurs seems to be in a recent national media adverts campaign regarding finance for small or new business's.

The only thing that would worry me, is the type of product that you intend to sell, being a specialised Luxury market product, and the discount offered.

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