SB: Help please - car loan info

Little_Mama

Hello,

Have any of you Small Biz people out there who pay yourselves a salary and dividends had any trouble arranging car loans, for yourself, NOT through your company?

We're thinking about getting a new car and would prefer to get one on 0% finance rather than eat into our emergency funds.

Any reassurance or warnings much appreciated.

LM

fguk

My experience has been that banks are (maybe were??) quite open to lending to Directors of Small Businesses. We have salary and dividends, and havent had a problem. We do however have 2 years worth of accounts filed, which may make a big difference.

Our accountant has always been happy to write a letter/fill in the forms if any companies needed verification of our credit histories.

I even talked to my bank about my mortgage. When I told them of my starting a business the branch manager said "good luck to you", and just hinted there would be no problem unless I missed payments (which is a problem if you are employed as well :rolleyes: ).

When I talked to them later about getting another mortgage and the fact I was self employed they said "thats ok, we almost expect IT people to be self employed, itll be no problem". May not be relevant with your business of course.

I have a personal lease car, had a bigger problem with the fact I was hidden on the electoral roll, than for being self employed.

Good luck.

Little_Mama

Thanks for that fguk, we've got 1 years account filed and our accountant would be fine for a letter.

We're also on the electoral roll and my husband is the director of our business.

Thanks again.

LM