business loans?

lucymarks

Hi,
I've an established business (20 months down the line) I started with a few pounds I had in the bank account working from home.

I now have a good turnover (am approaching the VAT threshold), but still don't see much (any?) profit.

This is partly due to a piece of equipment I bought 2nd hand which is getting past it's best and costs me time and £100's to repair each time it decides to have a problem. Also as there is just me working I spend a lot of my time doing chores and a lot less getting new business (am already stretched with the work load so don't take on more).

I've never been used to dealing with large sums of money and never been able to keep hold of what I earn.

I think am after replacing said equipment at a cost of £15,000, unfortunately I don't have these funds sitting around in my bank account and am at a loss at where to start. Bank fees for business loans are so high!!!!

Has anyone got any advice??

Thanks

WHA

For a piece of equipment costing £15,000, you should be able to arrange the purchase on a hire purchase or lease type of arrangement. If the supplier sells a lot of these pieces of kit, they probably have arrangements with a bank to offer the finance as well. If they don't, then you can contact prospective banks yourself - most High Street banks have business finance subsidiaries - a good first port of call would be your existing business bankers.

Your turnover sounds a bit low to justify such an expensive piece of equipment, after allowing for all the other costs and your time. Are you sure you're selling prices are high enough and that the machine is being used for enough hours in the day?

burbs_2

something is going wrong if you have a good turnover but little if any profit. The piece of equipment may be the source of some financial problems but surely not all of them. I dont think that your turnover could really condone spending £15 grand on a piece of equipment so look into leasing the item, as stated above, if this is possbile.