business or improvement???

devonside1

I have had my business for 10 years and am leasing a premises, have been offered a building for sale at excellent price and was going to bank for business loan. (i've never been in the red, and have paid off house as security) I've been told I would get better rates on loan if I went for a home improvements loan instead. Is this true, if so what would benifits be???

Tixy

I would tell them honestly what the loan is for. As its a business loan they'll likely want to see your business accounts for the last 3years and some fiancial projections.
If you are buying a property then usually the cheapest way is a loan secured on that property (ie a mortgage).

[Deleted User]

devonside1 wrote: »

I have had my business for 10 years and am leasing a premises, have been offered a building for sale at excellent price and was going to bank for business loan. (i've never been in the red, and have paid off house as security) I've been told I would get better rates on loan if I went for a home improvements loan instead. Is this true, if so what would benifits be???

it would be fraud
if you borrow the money for business purposes i assume there would be some tax advantages

paddyrg

Generally worth being honest - and if they offer you too high a rate for your taste, maybe ask some other banks who want to win your business

devonside1

Thank you so much, thats my gut feel too. Hadn't thought about fraud, but hate telling porky's. Have my books together, and approached my bank who have my history. Waiting on manager calling back. Thank you all ...conscience is clear.xxx