Finance for a motorhome to hire out.

benyboy37

I have a campervan i succesfully hire out at the moment. I would like to buy a brand new motorhome on finance to expand my business. I would be able to get finance through the motorhome dealer with Black horse. But as this would be on hp it breaches thier t&c's to rent the vehicle out.

Is there any finance out there that would suit my needs? I am not able to get a business or personal bank loan for the amount i need ( around 40K).

If I took the black horse finance and did'nt tell them I was going to rent it out would I be able to get through the credit checks personally, then switch ownership to my ltd company? Or at least change the bank account the payments came out of to my business account?

I would like to keep the finance separate from my personal accounts as I do not want it to effect me getting a mortgage in the future.

Also if i went ahead with the black horse finance, would i be able to get more motorhomes in the future if things went well? Or would they be suspicious of why anybody would need more than 1 motorhome.

Thanks and sorry for the essay!

dealer_wins

benyboy37 wrote: »

If I took the black horse finance and did'nt tell them I was going to rent it out would I be able to get through the credit checks personally, then switch ownership to my ltd company? Or at least change the bank account the payments came out of to my business account?

I wouldn't recommend committing fraud.

Your best (only) bet is a business loan, as you are basically running a business.

SeanG79

When you change the direct debit or if at any time during the agreement black horse realise what you are doing they will terminate the agreement and repossess the vehicle. This can also impact on your ability to obtain future credit.

There are many asset finance providers that will allow sub-hire and put the finance through the limited company, however majority of the consumer finance lenders like b/horse will not allow this.

poppasmurf_bewdley

Surely if you bought the motorhome as a private purchase, HMRC would not allow you to offset the purchase as a business expense, thereby negating your business plan.

SeanG79

The OP could probably "sub-hire" it to the business and in effect operate as a sole trader and the limited company as the separate entity could claim allowance on the "rentals" as a business expense, VAT claim would obviously fall away unless he was personally Vat registered.

I'm no accountant so could be very wrong here, but would imagine there would be certain charges that could be off set against tax

poppasmurf_bewdley

SeanG79 wrote: »

The OP could probably "sub-hire" it to the business and in effect operate as a sole trader and the limited company as the separate entity could claim allowance on the "rentals" as a business expense, VAT claim would obviously fall away unless he was personally Vat registered.

I'm no accountant so could be very wrong here, but would imagine there would be certain charges that could be off set against tax

HMRC would then want the OP to include this income as 'taxable income' and want him to complete an annual Self Assessment application if he's not already doing so. And not being able to reclaim the VAT on a £40k purchase would surely be a major financial disadvantage to the business.

Unless of course this is all being conducted under the radar, so to speak!

Apples2

Maria_James wrote: »

Well if at any time during the acceding atramentous horse realise what you are accomplishing they will abolish the acceding and reclaim the vehicle. This can aswell appulse on your adeptness to access approaching credit.

Quality posting... meanwhile, back on Earth.

DCFC79

Apples2 wrote: »

Quality posting... meanwhile, back on Earth.

I tried to understand what Maria Jameswas saying but really didnt make no sense at all, glad I wasnt the only 1.

27col

Maria_James wrote: »

Well if at any time during the acceding atramentous horse realise what you are accomplishing they will abolish the acceding and reclaim the vehicle. This can aswell appulse on your adeptness to access approaching credit.

Have you by any chance swallowed a script from "Yes Minister".

Tixy

I am surprised that Maria couldn't further expand or rephrase the word "horse" from Sean's post #3. Surely she could have come up with a creative rephrase?

poppasmurf_bewdley

Tixy wrote: »

I am surprised that Maria couldn't further expand or rephrase the word "horse" from Sean's post #3. Surely she could have come up with a creative rephrase?

Maybe she's never heard of "equus".