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£50K Interest Free Loan for 12 Months

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  • ladymuck
    replied
    I'm actually coming around to getting one of these.

    The consultancy negotiated 45 day payment terms down from the client's default 90 day but then we were all put on 3 day working weeks due to cash flow concerns. First invoice is due in two weeks and I'm not 100% sure that it will be paid on time - I'm on paid when paid terms. I don't think they're likely to go under but I just don't think paying the bills is their primary focus.

    This scheme may actually be helpful in that scenario as I could take the full 25% of turnover, use it like an interest free overdraft and just settle the loan when the invoices are paid. Much cheaper than factoring.

    When the scheme launches on Monday I'll have a look and see what the terms are, whether early repayments are allowed, etc. and update the resources sticky.

    Leave a comment:


  • GhostofTarbera
    replied
    Originally posted by jamesbrown View Post
    Exactly, why not?
    This time next year we might be deed

    Especially fatso members
    Old members
    Old fat members

    Make hay


    Sent from my iPhone using Contractor UK Forum

    Leave a comment:


  • jamesbrown
    replied
    Originally posted by BlueSharp View Post
    Worth a punt especially if there is no director guarantee is required like many commercial loans these days and the interest rates are not ridicules. This time next year Rodders...
    Exactly, why not?

    Leave a comment:


  • GhostofTarbera
    replied
    Originally posted by BlueSharp View Post
    Worth a punt especially if there is no director guarantee is required like many commercial loans these days and the interest rates are not ridicules. This time next year Rodders...
    Indeed, I’m investing in scooty tips


    Sent from my iPhone using Contractor UK Forum

    Leave a comment:


  • BlueSharp
    replied
    Originally posted by jamesbrown View Post
    Doesn't open until May 4, but why not? Even if there were a scope (there won't be), all of those you mention would clearly be within scope. There won't be any restrictions on how you spend it, providing you pay it back
    Worth a punt especially if there is no director guarantee is required like many commercial loans these days and the interest rates are not ridicules. This time next year Rodders...

    Leave a comment:


  • jamesbrown
    replied
    Originally posted by BlueSharp View Post
    Has anyone seen any details on this loan yet? Could one use it to expand their business, spend on staff, office costs & marketing etc?
    Doesn't open until May 4, but why not? Even if there were a scope (there won't be), all of those you mention would clearly be within scope. There won't be any restrictions on how you spend it, providing you pay it back

    Leave a comment:


  • BlueSharp
    replied
    Has anyone seen any details on this loan yet? Could one use it to expand their business, spend on staff, office costs & marketing etc?

    Leave a comment:


  • ladymuck
    replied
    Originally posted by Paralytic View Post
    I know this is a flippant suggestion, but the Loan Charge is a personal tax so you'd have to extract the loan funds from the company first.

    Perhaps transfer the funds to an offshore trust, who can lend it back to you, tax free, with a pinky-promise that you'll never need to pay it back (honest guv, search the documents, there's no word loan in there anywhere).
    No, no, just pay it directly from YourCo and fake an invoice pretending you bought a very expensive desk and special chair for your achy back. Capitalise those then "lose" them - maybe fire or theft - and write off the assets so they can't be repossessed against your debts.

    Simples.

    EDIT: for bonus points, claim on your home insurance for the replacement value of said desk and chair

    Leave a comment:


  • Old Greg
    replied
    Originally posted by Paralytic View Post
    I know this is a flippant suggestion, but the Loan Charge is a personal tax so you'd have to extract the loan funds from the company first.

    Perhaps transfer the funds to an offshore trust, who can lend it back to you, tax free, with a pinky-promise that you'll never need to pay it back (honest guv, search the documents, there's no word loan in there anywhere).
    Maybe you'll just have to pay yourself 50k salary and take the tax hit.

    Leave a comment:


  • Paralytic
    replied
    Originally posted by Old Greg View Post
    Use it to pay off Loan Charge (partially or in full), move to a brolly and then let the creditors wind the company up.
    I know this is a flippant suggestion, but the Loan Charge is a personal tax so you'd have to extract the loan funds from the company first.

    Perhaps transfer the funds to an offshore trust, who can lend it back to you, tax free, with a pinky-promise that you'll never need to pay it back (honest guv, search the documents, there's no word loan in there anywhere).
    Last edited by Paralytic; 28 April 2020, 13:25.

    Leave a comment:

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