In hopes of chasing a big dream, married couple and parents Steven and Romaine Rutherford decided to purchase an older property in the Highlands to start their new venture – running their very own holiday accommodation business.
Learn how Business Loans Scotland (BLS) helps people like the Rutherfords with small business loans in Scotland.
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Inverness guest house transforms with £70k loan from Business Loans Scotland
With hopes to optimise a strong tourism market for those looking to explore both the city and the Highlands, the Rutherford’s had a clear vision of their new adventure – creating a holiday accommodation destination, Aberfeldy Lodge Rooms. Steven said: “My wife found this property. It’s in a wonderful location right in the heart of Inverness city centre. It’s a big property and we saw this opportunity to have this guest house.”
But the Rutherfords quickly realised that due to the condition of the property, the undertaking would be a lot more expensive than they had initially anticipated. Getting a loan from BLS was necessary for the refurbishment works.
Seeking funding to support their refurbishment plans for the property, the Rutherfords turned to Business Loans Scotland (BLS) and, after submitting their application online, they successfully received a £70,000 loan as part of a wider funding package.
Steven said: “We only had to deal with one BLS representative during the entire application process. She was extremely helpful in assisting us with the application, including helping us optimise our business plan. Thankfully, we were successful and are very grateful as without BLS assistance we would not have been able to complete the refurbishment.
“Applying for a loan this big is a daunting prospect. Not only because there is uncertainty on outcome but also a huge commitment for us both. But BLS made it very pleasant. They were very helpful and I’m delighted with them. It was a positive outcome.”
Steven said: “It’s been the critical factor in being able to complete this project, that’s for sure.”
Fostering growth in small and medium businesses across Scotland
Led by a consortium of Scotland’s local authorities and now fully funded by the Scottish Government, BLS can offer loans from £25,000 up to £250,000 to new and established businesses throughout Scotland. By giving small and medium-sized businesses access to new sources of funding, these loans are used for ways of boosting your business. These include, but are not limited to, working capital, the purchase of plant or equipment, investing in business property and expanding into new markets.
BLS aims to give businesses access to funding that will support their growth and expansion plans. Whilst securing finance can be a major hurdle, particularly for small and medium sized businesses, BLS gives small businesses the opportunity to secure the finance required to realise their ambitions.
Tips for a successful loan application for your small business in Scotland
The number one tip for a successful application for a loan from BLS? “Having a business plan that’s fits for purpose,” said Andrew Dickson, fund manager at BLS. It’s important that your business plan has good, quality information in terms of profitability, performance, and projections. Your business plan should include information about your competitors, management team, product, service and more. Include balance sheets that demonstrate assets, up-to-date information on performance and sales, and make sure it serves as a snapshot of the value of the business. “It should communicate where you are, where you are going, and how you will get there.”
Your business plan should also consider what will the business do in the future with the loan. In your application, describe how will you grow your business to service and afford any additional debt it may take on with our loan. Cover cost projections, sales, profitability and more – but make sure these figures are realistic.
Andrew said: “Just tell us everything. Jut make sure that we know what you know and there’s not going to be any surprises that we find out that could make us doubt your ability as a management team.”
Calling all SME’s
Do you think your business could qualify for a loan from BLS? Andrew said: “We are seeking businesses to come forward. If you think you’re eligible, pick up the phone or submit your enquiry online. We have a team of loan officers who are ready and waiting to engage.”
Ready to make your dream a reality? Applying for small business loans in Scotland has never been easier. Get in touch with Business Loans Scotland today.