Sole Trade - loan to clean overdraft?

I'm not sure if this is in the right section but hoping someone can help me.
I am a Sole Trader with a small Company. It has slowed down in the past couple of months but I know the business is there so I am reluctant to shut the door. However, I am in the red now by a couple of grand (have an overdraft facility but nearly at my limit with this). There is still some business here but its slow. I know I am not working as well as I should be because the overdraft is always on my mind. So my question is, would it be possible for me to get a loan from the bank to clear the overdraft and pay the bank back on the loan on a monthly basis and I know I will be able to concentrate more and give the business more if I don’t have this overdraft hanging over me. Or is this a ridiculous thing to even think about. Will the bank just laugh at me?

Re: Business question

Firstly change the title of the thread to something like - Sole Trader - loan to clear overdraft.

As you are a sole trader the loan will be on your personal merits. Do you have any collateral such as a property to secure the loan against? Do you have any other earnings to justify the loan?

To be honest I do not think that there will be much of a difference between a loan and an overdraft hangiong over your. If you believe in your business and the customers and money is out there, clearing the overdraft should be incentive enough to achieve your goals.

Thanks ontour. I've changed the subject. First time here so only learning!
I know what you mean about loan still hanging over me but I think I will feel better about not being in the red. I know I will still have to repay loan but it will give me a little time to get back on track.

Apply to a different bank for a personal loan and clear your overdraft with it. Put it in your accounts as a business loan ,if you go the other route( business loan) they will ask for accounts/statement of affairs / business plan/blood group/ family history/what you had for breakfast etc etc.! Either way your liable for the loan so go the personal loan route and say nothing about clearing overdraft or business use.

My personal bank is the same as my business bank. So can I go to another bank that don't even know me and ask for a loan? Surely they'll question me quite a bit?

The other important consideration is how much you need to borrow? If you borrow enough to clear your overdraft, will you be back using the overdraft the next day? Then you will be worrying about a loan and an overdraft.

Also, have you done a projected cash flow for the next 6 -12 months? If the banks gives you a loan today, will you be able to meet the monthly repayments?

Have you considered other options such as entering in to a partnership or getting an investor for you business to faciliate growth?