gear on finance.. has it helped you??

[skyhuck]

I dont want to derail a thread but it is interesting the way we accept finance and overdrafts ect as a way to ultimately earn more money , so someone should tell the students to stop whining because there loan in no different as a way to a means to earn more money. (thanks rant over)

 

Absolutely correct!!!

 

In fact its even better than that, they only start paying when they are earning enough.

 

My son has just started sixth form and will be going on to Uni, I have told him how I have invested in machinery over the years, borrowing up to £30K on occasions, those investments have made me very good returns, but the investment he makes in his education has the potential to give returns I could not even dream of

[Matthew Storrs]

Absolutely correct!!!

 

In fact its even better than that, they only start paying when they are earning enough.

 

My son has just started sixth form and will be going on to Uni, I have told him how I have invested in machinery over the years, borrowing up to £30K on occasions, those investments have made me very good returns, but the investment he makes in his education has the potential to give returns I could not even dream of

 

Quite! Not suggesting your son but some people don't know they are born when it comes down to this matter, im sorry but university students do have it easier then they would like to think, if they put in the hard work (and assuming they get the job!) they will be earning a very decent wage with none of the expenditure that a firm such as a tree buisness will have to fork out for over the years to get anywhere even close to that wage.

 

But- no moaning here, it all comes down to choice!

[Johnnyboxer]

I have heard about variable rate finance, but this was a LOOOOOOOONG time ago and I don't think anyone offers it any more (or if it is even legal to sell)

 

Some finance companies offer variable rate HP for business users & it's legal

 

A lot of my farmer customers used it 2-3 years ago & have saved a fortune over fixed rate with base rate @ 0.5%

 

However the major Ag & Forestry provider of it, exited the market late last year & nobody else offers a competitive example these days

[brynseiri]

If your turnover yearly can take a finance payment hit then you are safe - so if the implement has a quiet period then you aren't relying on its work to pay for it. I have kit I have bought new, bought new on knock and now payed for and old kit bought outright ( bit different as am an agricultural contractor) and TBH buying a machine in the knock was easier than buying outright, I could budget for the payments and also meet all my other bills without worrying. Remember buying a trailer outright and had to work my backside off for months to make up the shortfall, whereas if I had done it on knock, I'd own it today plus something else. You can only really get cheap finance if at all on brand new kit, so it's a case of weighing up the pros and cons. If you can afford it, meaning you have plenty if work of all kinds, then it is a no brainer. If the finance payments will soak up income, profit and the ability to meet commitments, then stay well clear until the aforementioned situation is the case. I would also steer clear of finance if possible on a new to the business machine, EG if climbing is your established enterprise, and you get a stump grinder as a new enterprise, then that would be unwise, as it is un established and you may find it hard to get work for it and end up climbing like hell to pay for a stump grinder that is stood up most of the year.

Edited November 11, 2013 by brynseiri

[Matthew Storrs]

Couldn't agree more to the above post. I'm off the thinking that if your going down the finance route- why risk it on a used machine. I buy all my used gear outright- and from now on all new gear will be going on finance.