Clean It Up
UK Window Cleaning Forum => Window Cleaning Forum => Topic started by: PAUL ERITH on August 01, 2013, 05:33:22 pm
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Planning a complete change next year new shorter trading name, bigger van & possibly going ltd
My first question is will going ltd effect my chances of a bank loan for a new van ?
My second question is it easier to get a mortgage when your ltd rather than sole trader ?
the last question is are the accountant cost and paper work a huge amount more than soletrader ?
Thanks Paul
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Why do you want to go ltd?
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Why do you want to go ltd?
i would guess turnover
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Planning a complete change next year new shorter trading name, bigger van & possibly going ltd
Q -My first question is will going ltd effect my chances of a bank loan for a new van ?
A -It won't affect a personal loan. Will be very difficult to get a loan to a NEW LTD company without a personal guarantee.
Q -My second question is it easier to get a mortgage when your ltd rather than sole trader?
A -I'm LTD, getting a mortgage is difficult without 3-5 years profitable accounts. Not impossible though.
Q -the last question is are the accountant cost and paper work a huge amount more than soletrader?
A - Accountants cost more obviously. Expect to pay between £500 - £1k for the year. (Some pay more, some pay less, you generally get what you pay for. No reason why the paperwork should be any harder, just keep track of turnover/expenses etc.
Thanks Paul
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Planning a complete change next year new shorter trading name, bigger van & possibly going ltd
My first question is will going ltd effect my chances of a bank loan for a new van ?
My second question is it easier to get a mortgage when your ltd rather than sole trader ?
the last question is are the accountant cost and paper work a huge amount more than soletrader ?
Thanks Paul
1, Yes it will affect things, you will be starting from scratch as far as the banks are concerned, they will most likely wait to see at least a years trading accounts
2 No different as long as you can show your earnings, however they may view it as a job change.
3 yes they are a fair bit higher so best to shop around.
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I'd have to disagree.
1. You can get a loan straightaway for a new ltd company, I did it. I set up the company account with the same bank as my sole trader account. They have your actual banking history, not a credit check history. If all has been fine with your sole trader account, you will not have a problem getting a loan. I had £15,000 within 4 weeks of being ltd.
2. I don't have a clue.
3. Accountancy fees WILL increase as there is more paperwork their end, not a great deal though.
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Dont be crazy> Carry on as is, try get a loan from bank for van. Change name and when you get bigger sell you business to the LTD you want to start or even better buy a dormant company that has a tax losses. Speak to an account.
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What advantages does one gain from going LTD?
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What advantages does one gain from going LTD?
The obvious one is your personal liabilities are limited. This may or may not be an issue depending whether you want lines of credit or not.
There can also be tax benefits of being limited, depending on your turnover / income.
Being LTD can also be a requirement to be able to be eligible for certain contracts.
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My first question is will going ltd effect my chances of a bank loan for a new van ?
My second question is it easier to get a mortgage when your ltd rather than sole trader ?
the last question is are the accountant cost and paper work a huge amount more than soletrader ?
You really need to speak to an accountant about this. Loan for a new van in the business name may not be the best way to go. alot of people have there cars etc in there own name and bill the company for use of it ;) milege and wear and tear etc.
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3 answers
DON'T DO IT
DON'T DO IT
DON'T DO IT
Mr B
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Thanks for the replys i might leave going ltd for a year while i sort out all the other things i need to do bigger van new trading name Ect.
Thanks Paul
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You can stand behind a ltd company so your house etc are not at risk.
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3 answers
DON'T DO IT
DON'T DO IT
DON'T DO IT
Mr B
Why? What's your take on going ltd.
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Some mortgage lenders won't take dividends as proof of earnings.
Your 'salary' will probably be less than £10k with a dividend payment on top.
Agree with a few posts-get as much money as you can, if that's what you want, then go limited.
If you're earning £60k+ it'll almost certainly be more money in your pocket.
Not for everyone though.
Before you do something like that, you really need to speak to an accountant. Even if you don't use one now-chat with one.