Loan Application

Thanks for the replies.

The bank have already said yes, but want the accounts to satisfy themselves that I can afford the repayments.

Its a personal loan, and with my own personal bank, so im pretty sure they will not retract their loan offer. I just wanted to know if anyone had had to do it before, and what kind of info they usually send.

After speaking to my accountant, he suggests just projected income (rate * 48weeks), minus projected expenses (including directors salary).

Bearing in mind what IR35 Avoider said, have I misunderstood? Who's trying to borrow the money? You or you Ltd?

Under no circumstances get your Ltd to buy the car, unless you like giving loads of money to the treasury. Buy the car yourself and charge a mileage allowance to your Ltd when you use if for business purposes.

Of course, your Ltd could lend the money to YOU to buy the car. Just make sure you pay the loan back with the statutory period or there's more tax to pay.

Seriously though, can you not afford any car for cash? Is there not any dealer out there offering 0% credit - they will be less fussy, particularly if it's a Rover dealer.

Maybe I was making the wrong assumption that the bank were being difficult about lending the company money.

For borrowing money personally over one or two years you could try www.zopa.com.

Borrow the money yourself and lend it to the company (if it still makes sense for it to be a company car.)

It's difficult to get a good deal on a savings account for a small company - I imagine borrowing would be much worse - in both cases the market for dealing with individuals is huge and competitve.

Remember banks have good reason to be much more reluctant to lend to your company - it's much easier for the company to go bust without repaying than for you to go bankrupt.

Accounts

>> Anyone had to do this before, what information do they need? <<

I think you had best ask the bank that. This will hardly be an unusual situation to them, although they may simply say "forget it" if you've told them you're self-employed, and have been for nearly 10 minutes (they will assume you are a window cleaner at best, on the scrounge at worst).

Your alternatives are:

1. Find someone else less fussy.
2. Look hard and see if you really need to borrow money to buy a car. That is a step down the road to rip off heaven. Think to yourself what do you need the car for? Do you really need a flash car? Will a second hand car you can buy for cash do for now?

One to chalk up for experience though. Next time someone asks your employment status, just tell them you are employed. Don't explain that it is by a limited company that you are the sole director/shareholder/employee of. They don't need to know.

Guys

My car just died and I need a new one.

I have only been a ltd company for just under a year, but my bank want 2 years audited accounts or 2 years projected accounts before they will approve finance.

Anyone had to do this before, what information do they need?