Loan help - 14k

DCFC79

AMILLIONDOLLARS wrote: »

But he wants it now now now!!!!:D


AMD

Like alot of people then

christm_2

OK Then - full story.
I'm on 34k per year. Mortgage has been re-mortgaged to be £850 per month. Add in Council Tax of £150. Gas and Elec £80 etc...

My wife and I run a business which needs a bit of cash to see it through the Summer (5k for example).
Our car payment currently comes out of the business on a pcp agreement but I now need to buy the car outright as the deal had ended.
I'm reluctant to get a business loan so would prefer to guarantee it personally. However, the amount of repayment on the loan would be paid as dividends out of the business to my wife which would in turn repay the loan. As she has no other job, the dividend payment would still be under the yearly tax threshold.

So I'm not really trying to afford the repayments out my personal account, they will be paid for by the business (which needs 5k to pay some things in advance and also to invest in some new technology, marketing etc...) but I'm reluctant to tie the business up with a loan therefore thought it made more sense to get 1 personal loan for car+business needs but repay it from the dividends out of the business.

Hope that makes sense.

Martin

AMILLIONDOLLARS

What happens after the Summer? will the turnover then be enough to service the loan during the repayment period? If the business is not making enough now to do the things you want, think carefully about adding additional commitments to it.

AMD

christm_2

Yes it will be. The issue last year was unexpected staffing costs which has now been fixed. Projections show that the business will comfortably be able to pay the repayment costs (I've worked it out so that even if the real income is a 50% drop from my figure, the repayment costs would still be met).

Martin