Using a CC/Loan as a Salary

colin77

Hi All,

You helped me before with buisness bank accounts and I opted for Abbey and they seem just fine, no bills or statements yet though, fingers crossed i'm using it right. Thank you all.

My new question is my best method of securing funds to cover my family costs? we started the company in Oct 2006 and want to self fund until dec 2007 (14 months) we hope to sell our product (we work per product) between April and August which would pay us for the next project and more hopefully. but if no we are using August - Oct to try to sell it and if that fails the final 2 months to find jobs. i can self fund on my savings until April (paying for the month of may)

I have budgeted to £1800/month for my family which is still not enough but i need a further £15000 est to cover myself from may onwards. I know you may be thinking you should have worked this out before which i did to a certain degree but needed to get the company running because of timing and this seemed managable with a loan or CC, now looking into it i see it's more of a mine field than i though.

It seems if i want a CC like Egg i would need to pay about £300/m so of course my load would have to add that, not to mention the additional moneys interest, or i could aim for a CC, i have about 1k outstanding on a capital one card and no other debts (saying that, 4 weeks till first baby comes, so that may change....hehe! never, my life and budget will remain, gulp) so i thought of pushing those as much as possible and then make a BT to egg but i don't think i can get a large enough credit limit.

confused? any advice would be great.
breakdown: Cheapest way to get 15k to use as a salary.

Thanks,
Col

Torby

personal loan?

ukbill69

If you have a limited firm then you could go to the bank with a business plan to offer you a loan and then at least if the plan goes bad you are not liable. Most banks will give loans with good business plans. Try not to go into your personal money, I know thats very hard. Try get a loan from the bank and you and your family will be safe.

motorguy

ukbill69 wrote:

If you have a limited firm then you could go to the bank with a business plan to offer you a loan and then at least if the plan goes bad you are not liable. Most banks will give loans with good business plans. Try not to go into your personal money, I know thats very hard. Try get a loan from the bank and you and your family will be safe.

Sorry but you will really struggle to get the bank to lend a limited company money that has no history of profit for the simple reason that if the plan goes bad THEY are liable, and they don't like taking risks.

colin77

Hi all,

Thanks so much for your replies.
firstly, yes it was a personal loan i was thinking.
secondly i get you completely about bank loans, i know the interest is super high and i want to try this alone because we are in a field no one really knows much about in day to day life other than buying (we make console game and have been for 20 years between the two of us for other companies)

so i would consider finding another option with my partners help, we just need enough to survive since we own all our own hardware and software so i continue my search and suggestions and pop back to this thread if i need some more well placed advice, thanks again.

Col