I am surprised they managed to get the loan via the Small Firms Enterprise Loan Guarentee scheme. I don't know any web based business that has succeeded yet, most bank managers authorise the loan as the guarantor provided you have enough equity yet in experience lack little web experience and equity in a property.

I am citing from previous experience, when pitching a travel startup to a Natwest 'business' manager his response when I expressed a point about Expedia was.. "who are they?". Enough said.