The Lemon Fool

Daughters travails continue!
So now we need some equipment and have been quoted for supply and install of approx £30k.

Looking at finance houses for loans and some of them - well - El Bandido comes into mind. One is saying that for all they want £42k. over 36 months.

Now I realise that without a good deposit they want to price on this risk, but that is nearly a one thrid premium. Is this usual?

I am thinking we may need to put in a deposit.

Would anyone have any thoughts on using a finance house and any recommendations (or advice) as always would be gratefully received.

Thanks

Swiss

Kids eh!?

I may have missed any earlier posts you've made re this in which case apologies. You don't say what sort of business it is or what sort of equipment or what share of the £30,000 is equipment cost and what share is the fitting cost.

Anyway, have you considered leasing the equipment?

Where is the business located? Does your daughter own the property (in which case maybe a mortgage or top up mortgage or bank loan is an option?

Laughton wrote:Kids eh!?

I may have missed any earlier posts you've made re this in which case apologies. You don't say what sort of business it is or what sort of equipment or what share of the £30,000 is equipment cost and what share is the fitting cost.

I think the business was outlined at viewtopic.php?f=45&t=41107&p=623214#p623214. our questions about the property are righton the money.

I'd add that it would probably be necessary to formally check with the water board that the drains will be able to cope with heavy use. It isn't hard to see why. Might be as well to look into that?

BJ

I'd say without a three year trading history for a new start up, I am not in the least surprised at the premiums required. I'd imagine in the case of default the banks would struggle to claw back much, if any of the £30k capital from repossession, unlike say a car.

TBH I'd be surprised if they could secure such a loan without a substantial deposit and/or some charge against other assets.

I wish your daughter all success with her new venture but the hard noses of the finance industry are well aware that over 50% of new businesses fail within the first three years and therefore are keen that the owners of any new venture have a significant amount of their own capital a risk before they deign to share that risk.

My daughter and her husband set up their new business 18 months ago and the bank (in France) have only just agreed to offer overdraft facilities after seeing a successful 18 months trading performance. No loans were taken out since they would not have been available to them so they each invested all of their life savings into the venture (significantly over 6 figures). They are now beginning to see some return on this investment but it is a hard slog even without having to pay large amounts of interest before seeing any profits.

John

Hi Folks,
first of all a big thanks to all that responded. If I could work out how to click on and thank you individually then I would (pointers please)

Update - we have pooled resources and as Redsturgeon says it works out cheaper and the pressure is off a little bit as most finance houses wanted 3 years whereas we can wait a bit longer for our return.

Yet again the level headed fool team come to the rescue. Now all I have to do is revisit my posting about a leaky roof as we presumed it was fixed and awoke this morning to the dreaded sound of a drip drip! grrrrr

Click the thumbs up here-----------------------------------------------------------------------------------------------------------------------------------------------------------------------^^

SwissPaul wrote:If I could work out how to click on and thank you individually then I would (pointers please)