Maybe I need some finance consultant, but situation doesn't look to me like very rare. Lots of people must have got multiple small businesses, unfortunately I don't know any in person.
Andy
-
My accountant suggested a loan as well and avoids going into further discussions
Maybe I need some finance consultant, but situation doesn't look to me like very rare. Lots of people must have got multiple small businesses, unfortunately I don't know any in person.
Andy -
What did your accountant say?Originally posted by ako View PostLeave a comment:
-
Thank you! In other words if I run 2 businesses the only way to use profit from one business in another business is:
1) to give it a loan
2) by taking money out from the 1 business as dividends and investing into second one as a personal funds
Is it correct understanding?
AndyLeave a comment:
-
Well, those risks need to be taken into account in what you price the loan at. In the event of the loan becoming irrecoverable and written off then this should produce a loss which can be reclaimed against future corporation tax so that will at least provide 20% relief. However you will need to verify that in your circumstances that it will generate relief. Your involvement in the retail business may mean it doesn't.Originally posted by ako View Post
You could also consider cash for equity investment.
If you are worried about the downside then perhaps you might want to reconsider your involvement; only you know your risk profile. But there isn't a magic way to make that risk go away.
You may want to consider the form the loan takes, with security over assets, or as a debenture or some other form of senior note. At least you might be able to engineer your self to be first in the queue rather than just a general creditor, though of course this will tend to impact of the ability of the business to raise other finance since it will change the risk profile to any other lender.Leave a comment:
-
Thank you very much! I've been through first few pages of the search results, maybe my request wasn't precise enough, but I didn't see that thread.
Loan is the first thing that come to my mind as well. What about if the startup won't get any profit and won't be able to repay the loan?
I am genuinely worried if I get stuck with bunch of stuff which I just can't sell or something gets damaged or any other reason for business to go down.
AndyLeave a comment:
-
Sound advice from Mr Upton!Originally posted by northernladuk View PostSometimes... Just sometimes..... Doing a search to find information on the forums is not a good idea
http://forums.contractoruk.com/accou...companies.html
Leave a comment:
-
Sometimes... Just sometimes..... Doing a search to find information on the forums is not a good idea
http://forums.contractoruk.com/accou...companies.htmlLeave a comment:
-
fund another company from your LTD profit
Hello! I've got a question for the community.
I am operating as a 1 person LTD IT consultancy.
Recently I got involved into an online retail business as a side project with few other people. I run website and do all IT related stuff.
So I have to spend on hosting, marketing etc + my own time.
Also we have big spending on goods purchase, logistics etc.., basically non-it costs.
For all spending: IT and non-IT I have to take money out of my company as dividends.
Is there a way for me to use my company money for this business? maybe as an investment.
Andy
Leave a comment: