Draft soa

JCS1

fooman wrote: »

self employed electrician most of the debts were built up when i started up 4 years ago. Things are going ok at the moment but not enough income to cover all my debts. Car is being collected this week as i have missed so many payments on it. The van i have for work is up to date and about 10 payments left on it,

The main thing is that you can show a profit after the debts have been cleared.

The van I guess is worth £4,500, what type of finance is it? and how much finance is outstanding? Makes all the difference whether it is HP or Loan.

sieve

JCS1 wrote: »

What business are you in (anything considered 'risky' e.g. pub, etc, the OR can and will close down). You also need to be able to show to OR that the business is profitable - no point going BR and clearing debt for it to then build up again. They can also ask for you to provide management accounts/Profit and Loss accounts every 3 months during your BR.

Sorry to hijack this thread a bit.

JCS1 - would a self-employed IT consultancy (sole trader) which pays enough to cover the business's costs and my bills be classed as 'risky' do you think? My client portfolio would be worthless to anyone else as most of it was gained through referrals from existing customers, and everyone has a 3 month get-out clause in their contract if they want to stop, so whoever the OR sold it to could potentially only have 3 months in the bag on the existing contracts.

JCS1

sieve wrote: »

Sorry to hijack this thread a bit.

JCS1 - would a self-employed IT consultancy (sole trader) which pays enough to cover my bills be classed as 'risky' do you think? My client portfolio would be worthless to anyone else as most of it was gained through referrals from existing customers, and everyone has a 3 month get-out clause in their contract if they want to stop, so whoever the OR sold it to could potentially only have 3 months in the bag on the existing contracts.

Should be fine but does depend on your OR. It does tend to be pubs and shops that get closed down (lots of assets and the public going in and out make it high risk) If your client list is worthless to anyone else, they are unlikely to do anything - and would even prefer you keep them to make money towards a potential IPA :rolleyes:

For fooman as an electrician, they might want to see up to date insurance certificates, that type of thing just to cover themselves.

sieve

JCS1 wrote: »

Should be fine but does depend on your OR. It does tend to be pubs and shops that get closed down (lots of assets and the public going in and out make it high risk) If your client list is worthless to anyone else, they are unlikely to do anything - and would even prefer you keep them to make money towards a potential IPA :rolleyes:

For fooman as an electrician, they might want to see up to date insurance certificates, that type of thing just to cover themselves.

That's brilliant - thanks very much indeed

fooman

van is a 52 plate vivaro with 90k on the clock. Costs me about 167 a month and there is a balance of about 1400 outstanding tho. I now use it for work as car is going back and the balance on the car is showed as GMAC on my SOA.

I have not put the van on there as i need to keep it and it comes from my buisness.

JCS1

fooman wrote: »

van is a 52 plate vivaro with 90k on the clock. Costs me about 167 a month and there is a balance of about 1400 outstanding tho. I now use it for work as car is going back and the balance on the car is showed as GMAC on my SOA.

I have not put the van on there as i need to keep it and it comes from my buisness.

Even though the van is a business asset it will still need declaring to the OR due to you being a sole trader

My concern (and hence asking for current value and if HP/Loan) is that the OR might consider it an asset (given the value rather than a tool of trade) and might consider selling it and giving you up to £2,000 towards a replacement. They can only do that if a loan; HP depends if there would be any money left after paying off HP.

Make sure your valuation is correct (am sure the mileage will reduce it down ).

fooman

that value in my SOA if for the car thats being taken back this week sorry, The van is worth about 2k i would of thought.