[wcs.]

M

[seandyer2003]

i used finance to get set up and i have quite a large overdraft for this purpose, especially when it comes to marketing etc, you need capital up front, or if you are taking on a big contract and your not getting paid till end, you need finance, if you dont have the capital, but obviously you want to be careful with it, and will no doubt be very difficult to get it in the current economic climate

[ftp]

Never had it and doubt i ever will.

[Llaaww]

never have never will

[dai]

No debts for me, I will either save for it or do without it. I know it's crazy but there's 3 grand sitting in my business account doing nothing.

[peter holley]

Interesting so many are strongly against financing there business, I can understand if you are fully established and work your accounts accordingly or nearing retirement.

Financing your business is the norm not the latter, after all this would be money well spent and it should bring in more money for your business. Any interest charges on the principal would pale in comparison.

The investment could accelerate your business to get where you want to be a years sooner. The biggest benefit will be the money you make in that time; opposed to the money you will lose by moving to slowly.

this post ,thread, is silly in the first place!   every buisness is financed!  whether it be  from a different source ie bank or the owner   i have a loan for my van, but I finance the marketing myself.....finance doesn't always mean borrowing.

[peter holley]

 by the way i posted not financed , but who knows , in the future i may borrow if i think it would be a good choice

[bwoofie]

I think most people will get the Gist of the post

[ftp]

Interesting so many are strongly against financing there business, I can understand if you are fully established and work your accounts accordingly or nearing retirement.

Financing your business is the norm not the latter, after all this would be money well spent and it should bring in more money for your business. Any interest charges on the principal would pale in comparison.

The investment could accelerate your business to get where you want to be a years sooner. The biggest benefit will be the money you make in that time; opposed to the money you will lose by moving to slowly.

Maybe that's why a lot of small businesses are in desperate trouble at the moment? Go too big too soon and borrow mega money then look what happens when the work dries up?

[peter holley]

i have invested a huge amount in my buisness  "TIME"

[ftp]

Ewan, what do you want from your business? Do you want to earn a living or world domination?
I did a post last year highlighting what a waste of money it was investing in a shiney van, top of the range kit, hot water etc. When there are guys with full rounds doing exactly the same for less than a grand. If you have the work then why bother to invest - there's no need.

[Davo]

Financing ,in respect of borrowing funds, is down to personal choice as well as personal circumstances.
But I think the major issue is, does the benefit exceed the risk.

Buying a new van is no guarantee of success, the same way as using on old ford escort isnt either, the  major difference is the monetary  loss you may face. Both options have their pro and cons

Buying for the sake of buying is a waste of money whether the money is borrowed or not.



Mark

[Clive McDonald]

Just for once i'm with you Ewan. Buy the best equipment you can afford. Think through a strategy and if it costs money spend it. There is a big opportunity for innovation at the moment, and as you would expect I am caning it with the job bending over nicely and enjoying the whacking.

[ftp]

Strangely enough Davo's post is relevent. No point pouring money into your business if the gains don't exceed the money spent. I would be interested to know how many people on here consider they have earnt enough profit to pay for their shiney kit. I've been going nearly two years and don't think i've earnt anywhere near enough to cover my initial start up costs even though i'm on a reasonable wage. I have further invested in a gutter vacuum system this year so will need to turn over a fair amount of work before i consider it a break even point.
 I think many newbies enter into finance as the only way to get going because they lack any funds.

[dai]

The best investment you can make is not necessary finance, it's time.
One big mistake I made was taking my foot off the pedal once I had a full round.
I should have carried on with my Saturday canvassing, looking for more lucrative work and dropping the dross.
 I really regret this now, it's the ones that I didn't want to let down that proved to be the least loyal. The dross are dropping me now for an undercutting trad guy. No loss to me financially, but a lesson learned, and in my case too late.
The best thing for me about this job is the lack of stress, being in debt would cause me stress, so I don't do it, but this is just a personal thing, it's up to each individual to make their own choice.

There is a positive aspect to finance, and that is if it drives you seek better and better work until you pay it off. You could end up with a better quality round at the end of it.

[tradman]

wise words dai. wise words indeed

[pureease]

you need to bye most equipment on leasing higher much beter tex retrun you get 75% if you bye out right over 3 years and 100% on a leasing so why pay tex is what i think .

[dmlservices]

The best investment you can make is not necessary finance, it's time.
One big mistake I made was taking my foot off the pedal once I had a full round.
I should have carried on with my Saturday canvassing, looking for more lucrative work and dropping the dross.
 I really regret this now, it's the ones that I didn't want to let down that proved to be the least loyal. The dross are dropping me now for an undercutting trad guy. No loss to me financially, but a lesson learned, and in my case too late.
The best thing for me about this job is the lack of stress, being in debt would cause me stress, so I don't do it, but this is just a personal thing, it's up to each individual to make their own choice.

There is a positive aspect to finance, and that is if it drives you seek better and better work until you pay it off. You could end up with a better quality round at the end of it.

that was a very good post dai, food for thought.

 i made that mistake, stopped looking for new work once i had a full round, been at it 20 yrs, used to wait for work to come to me , there was little competition round my way back then, different now,more and more new start ups.

you make a very good point for investment in this buisiness,and your right ,time is the best investment you can make.

i am 42 now , and find my self in a position where i need to chase new work, not through loosing any work, but from the simple fact that since i went wfp, i am getting quicker and quicker, and doing a better job, there fore  i am getting work done quicker

i have financed parts of my buisiness, and probably will more in the future,but for the time being , time will be my biggest investment, followed by financial investment as i move forward

daz

[twt]

you need to bye most equipment on leasing higher much beter tex retrun you get 75% if you bye out right over 3 years and 100% on a leasing so why pay tex is what i think .

Sorry but your wrong there from this tax year you can spend up to £50000 a year on equipment for your business and get 100% tax relief e.g if you spend £10000 on a van you would not have to pay any tax on that £10000, Where as  prevously you would have claimed tax relief on on the depreciation. So for many leaseing no longer has the same tax benifits.

[Dean Taberner]

I had a loan for my new van. I can easily afford it so as far as im concerned theres no prob.

I need a newish van as we cover nationwide.

Dean.