Business loan for ebay

taralou

Hi, yes I do work full time hence the evenings and no not making that much at the moment. I am registered with HMRC.

pelirocco

taralou wrote: »

Hi, yes I do work full time hence the evenings and no not making that much at the moment. I am registered with HMRC.

You will probably have used up all your tax free allowance on your day job , so you will be liable for tax on your profit

XXSCOTSLASSXX

pelirocco wrote: »

You will probably have used up all your tax free allowance on your day job , so you will be liable for tax on your profit

I was thinking the same, have you filled in a tax return since starting this as a business? you will probably find you will have to pay tax on all youve made so far, which personally would make me rethink as to whether it was worth borrowing x amount to expand and go full time when there are no guarantees you will make enough to even cover the payments on loan each month...

even tho you say you only do it in the evenings.... the listings are there full time while you are at work etc postage etc can be done the next day after purchase made.... in my opinion I would stick at it part time as you are..bank the profits and then use this to fund any expansion etc rather than taking out a loan and putting your business into a large negative before u even start .... this is only my opinion tho xx

dresdendave

XXSCOTSLASSXX wrote: »

..bank the profits and then use this to fund any expansion etc rather than taking out a loan and putting your business into a large negative before u even start .... this is only my opinion tho xx

My thought as well. Use your profits to fund expansion. It may take longer but if it all goes wrong you won't be stuck with a bank loan to repay.

[Deleted User]

taralou wrote: »

Thanks for all the responses.
Property.advert - I have kept accounts for the last year.
Tixy - I am registered with HMRC and have my own accounts, no tax as not earning enough at the moment. I have not been trading as a shop for 8 years only a year.
Heathcote - nowhere near 75K (I wish!!) round about 7/8k per year from that approximately 25% is nett profit.
Pelirocco - I am paying back what I have borrowed

So would I be better to go for a personal loan.
My thinking is I would like to make this shop my main income and work at it full time as only evenings at the moment. I also would like to have my own website and some of the money would go towards advertising (Google etc) as well as upping the stock.

if you take out a personal loan for business purposes then its fraud

btw have you told your local council that you trade from home in order to pay business rates?

heathcote123

taralou wrote: »

Hi, yes I do work full time hence the evenings and no not making that much at the moment. I am registered with HMRC.

Loans, cc's, evenings all sound like a lot of effort for £40 a week. Must be very low margin stuff to need a loan to make this amount.

How does it scale? - do you have people demanding more of your product, or will doubling yoursales mean doubling your time input?

75k vat threshold really isnt a lot of turnover if you're only making 25% on it. - And when you do, you're stuck unless you can raise prices by 20%.

Definitly best to keep it part time unless you have a solid business plan or unique product.

XXSCOTSLASSXX

taralou wrote: »

nowhere near 75K (I wish!!) round about 7/8k per year from that approximately 25% is nett profit.
.

75k vat threshold really isnt a lot of turnover if you're only making 25% on it. - And when you do, you're stuck unless you can raise prices by 20%.


turnover isnt 75k its 7/8k .........

heathcote123

woodbine wrote: »

if you take out a personal loan for business purposes then its fraud

btw have you told your local council that you trade from home in order to pay business rates?

Do you work with a clipboard by any chance?

heathcote123

XXSCOTSLASSXX wrote: »

75k vat threshold really isnt a lot of turnover if you're only making 25% on it. - And when you do, you're stuck unless you can raise prices by 20%.


turnover isnt 75k its 7/8k .........

Yes, but OP is talkng about running it as a FT business & giving up the day job.

She'd need to ramp up to 10 times that level just to earn 18k a year.

Then she'd lose about 80% of her profits in vat, putting her on about very little indeed. (ebay items are vat inclusive)

VAT threshold is a big trap for any micro business that sells direct to non business consumers.

XXSCOTSLASSXX

ah i see many apologies xx