Buying an asset for someone else
Discussion
My VAT REG ltd company is buying a coach for another vat reg company and the idea is they pay for it over 2 years and we put interest on the repayments.
In other words we can afford to buy an asset another compsny needs and we gain about 10%
What are the implications of this I am sure it's not this simple
In other words we can afford to buy an asset another compsny needs and we gain about 10%
What are the implications of this I am sure it's not this simple
What type of terms and conditions will you be utilising to "lease" the coach to the other business?
Does your company Memorandum and Articles of Association allow your company to conduct this type of business?
Even if it does, is this type of business significantly different from what your company normally does?
Does your company Memorandum and Articles of Association allow your company to conduct this type of business?
Even if it does, is this type of business significantly different from what your company normally does?
Eric - the company doesn't do anything like this and I realise it's not workable through it in hindsight.
Desolate - I need some security and didn't want to over complicate it if not paid back. I can take a PG but that still involves court and hassle if defaulted..
If I lend the company the money what's the best way to have security ?
Desolate - I need some security and didn't want to over complicate it if not paid back. I can take a PG but that still involves court and hassle if defaulted..
If I lend the company the money what's the best way to have security ?
Eric Mc said:
Why can't the other company borrow through normal channels?
If they can' - I certainly wouldn't be lending them anything.
The sole director made a mistake about 4 years ago and its tainted his record, the business they have now I am close to and I realise the potential and the opportunity, VIP coaches are in huge demand and the enquiries are far more than can be serviced. . The director has property and a outright owned coach as collateral plus we go back 40 years.If they can' - I certainly wouldn't be lending them anything.
DSLiverpool said:
The sole director made a mistake about 4 years ago and its tainted his record, the business they have now I am close to and I realise the potential and the opportunity, VIP coaches are in huge demand and the enquiries are far more than can be serviced. . The director has property and a outright owned coach as collateral plus we go back 40 years.
You charging him 10% interest. Did he upset you? 
Jockman said:
DSLiverpool said:
The sole director made a mistake about 4 years ago and its tainted his record, the business they have now I am close to and I realise the potential and the opportunity, VIP coaches are in huge demand and the enquiries are far more than can be serviced. . The director has property and a outright owned coach as collateral plus we go back 40 years.
You charging him 10% interest. Did he upset you? Eric Mc said:
Have you looked at what type of tax relief YOUR business might or might not be entitled to claim on such an asset?
Have you discussed this with your accountant.
Waiting on a reply from my accountant who is looking into it, on here you get more than one view of a scenario which I like Have you discussed this with your accountant.
DSLiverpool said:
Eric - the company doesn't do anything like this and I realise it's not workable through it in hindsight.
Desolate - I need some security and didn't want to over complicate it if not paid back. I can take a PG but that still involves court and hassle if defaulted..
If I lend the company the money what's the best way to have security ?
Obviously you would need to to speak to an accountant but I would say you could lend the company the money and take a charge over the shares in the company or over the vehicle.Desolate - I need some security and didn't want to over complicate it if not paid back. I can take a PG but that still involves court and hassle if defaulted..
If I lend the company the money what's the best way to have security ?
Seems like a lot of hassle for the money, but if you want to help him out then it is doable.
For the amounts involved, if you can't trust him on a handshake I wouldn't do it, but that's just me.
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