I am a homeowner but I wouldn’t want to secure a business loan against my house. Is it likely that a bank would touch me at the moment or would I have to wait until the debt is gone?

Having existing debts need not necessarily prevent you from raising finance to start a business. You should start by talking to your existing bank or finance provider. You should have built up a track record with your bank through the conduct of a current account (as well as perhaps other facilities), which will enable them to assess your creditworthiness.

Dependent on the business you intend starting and the sum you wish to borrow, they may also want to see a business plan to assess the potential for servicing the interest and capital repayments of a bank loan or overdraft on top of your other commitments.

Starting a new business is inherently risky and you should consider trying to increase the odds of success by starting on a part-time basis to test the business model, to demonstrate whether the business has potential and as a way of minimising any initial finance requirement.

Friends and family are often a good way to finance the early stage of a business but arrangements should be put on a business footing with a written agreement between the parties about the duration of any loan, the interest payable and repayment terms.