Finance or loan

[Winkle]

Hi guys and girls. Im starting on my own this year and want a bit of advice on whether to get a business loan from the bank or get the bigger items on finance.

 

What are the pros and cons of either.

 

Can you suggest a finance company if this is the way to go

 

Thanks Adam

 

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[A Pettersen-Firewood&Chip]

Hi guys and girls. Im starting on my own this year and want a bit of advice on whether to get a business loan from the bank or get the bigger items on finance.

 

What are the pros and cons of either.

 

Can you suggest a finance company if this is the way to go

 

Thanks Adam

 

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Try to avoid bank loans

 

you have to start of small and then work upto the big stuff so a basic van and saws and gear and hire chippers as and when you need them until you save money in the bank to buy one this is what I did took a year but now im big hope it helps PM if you have any questions will be happy to help

[Winkle]

Ive got the small tools its just a van but I dont want an old dog that will be off the road more than on it. Im looking at around 7-9grand on a half decent van. The chipper and grinder I can borrow or hire for now but just dont have that sort of money

 

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[detritus21]

7-9k is alot to spend on a van. You'll get something that looks right and probably will last well for less than 5k. I started out with a 800 quid van. Then progressed to a 4k ldv which was underpowered but looked right. Finance is good if you have work to pay for the finance. Likewise having the kit can generate work.

[Stephen Blair]

Unless I knew a lot more info about you and your business I can't give the best advice, £9k on a van sends alarm bells though.

£9k can get you a transit high sided tipper and a chipper.

If your starting out, £3k can get you a micro chipper that goes in a £1500 van.

 

 

 

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[Paul Jenks]

What they said. Save your cash and avoid spending too much too soon. When you're ready there are plenty of lenders out there apart from the banks, who probably wouldn't loan you money anyway, (unless you mortgage your soul, family and house to them.)

Speak to Chris at Asset Finance Solutions & Commercial Mortgages | NGI Finance

I've known Chris for a number of years and he has given advice and sorted some good deals for asset, vehicle and growth capital finance.

[Winkle]

Cheers guys will have a re-think.

 

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[MattyF]

Finance would be for me the option every time.

Hire purchase for tax is a good break and you end up with a decent machine if you look after it.

Apr from banks is a killer!

 

 

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[doobin]

OP- the van doesn't make you money. My LDV was £1300 and has done me three years hard work with maybe £500 a year spent on maintenance. What has made me money is all the different tools and machines I bought with the money I saved on the van.

[richy_B]

Appreciate this is not a current thread but to put in my 2 cents - talk to the banks before you assume they'll lend. I presumed because I had a good credit rating, financial history, business plans, etc that it would be as easy as asking for £15k and off you go. I had all but one high street banks say they do not lend to start ups or companies without 2 years trading history. The one they made an offer did so at 18% APR and want me to put up 50% of the money and provide security against the rest. For £15k FFS. The cliché that banks don't like small business was absolutely the truth in my experience.

 

Even now as an established business with financial history banks still charge very high rates (from my perspective). 12-15% apr over 3 years.