Small Business - Cash Advice
Discussion
After 2 years of fighting i've finally just about got my personal finances under control, so now trying to make my "side hustle" work more effectively.
I have a current account with Starling which handles day-to-day stuff. It never really has more than £3k in it. Day-To-Day trading turns over about £8-10k a year.
As part of my side hustle I buy and sell light aircraft. Good money but very cash intensive (Think £15k out, £20k in 3 months later - built from my last £500). I do 3-4 "units" a year as and when I see something worth buying.
At the minute as soon as the sale transacts and any accounts are cleared I tend to lump the whole lot into a savings account at cira. 5% (easy access as I move quickly when I want to buy). Money never sits in my current account.
1. There must be a more efficient way of doing what i'm doing?
2. Am currently sat on around £20k (give or take) but i'm being slightly hamstrung by lack of available funds. I've seen revolving credit limits in my professional world but this is generally around millions, not thousands. Is there a small business equivalent?
Bit clueless about this; I do hairy a8sed spanner monkeying not juggling money around.
I have a current account with Starling which handles day-to-day stuff. It never really has more than £3k in it. Day-To-Day trading turns over about £8-10k a year.
As part of my side hustle I buy and sell light aircraft. Good money but very cash intensive (Think £15k out, £20k in 3 months later - built from my last £500). I do 3-4 "units" a year as and when I see something worth buying.
At the minute as soon as the sale transacts and any accounts are cleared I tend to lump the whole lot into a savings account at cira. 5% (easy access as I move quickly when I want to buy). Money never sits in my current account.
1. There must be a more efficient way of doing what i'm doing?
2. Am currently sat on around £20k (give or take) but i'm being slightly hamstrung by lack of available funds. I've seen revolving credit limits in my professional world but this is generally around millions, not thousands. Is there a small business equivalent?
Bit clueless about this; I do hairy a8sed spanner monkeying not juggling money around.
Only on Pistonheads will you find someone with a 'side-hustle' selling aeroplanes. Marvellous 
.... what's your day job, selling Oil Tankers!
In answer to your question, I don't think there is anything that would provide any advantage over what you are currently doing. As you mentioned, banks will bend over backwards if you're dealing in tens of millions but have little to no interest in anything under £100k.
I don't think that a Savings Account is optimal for the way you're using the money. With Starling, you can set up 'Spaces' in your account into which you can transfer funds to and from the main part of the account. I'd be using this and using a Savings Account to squirrel away portions of your profit. That way you always have ready access to cash as and when you need it.
.... what's your day job, selling Oil Tankers! In answer to your question, I don't think there is anything that would provide any advantage over what you are currently doing. As you mentioned, banks will bend over backwards if you're dealing in tens of millions but have little to no interest in anything under £100k.
I don't think that a Savings Account is optimal for the way you're using the money. With Starling, you can set up 'Spaces' in your account into which you can transfer funds to and from the main part of the account. I'd be using this and using a Savings Account to squirrel away portions of your profit. That way you always have ready access to cash as and when you need it.
Day job is telling people what helicopters cost...only in Pistonheads.
Thanks - I use spaces for hiving off stuff like tax/insurance/etc. It's more that I don't tend to carry stock aircraft for too long - I could end up with £15-£25k that I don't know if I need in three days time or three months time.
Basically imagine a car garage but with really low stock turnover...
Thanks - I use spaces for hiving off stuff like tax/insurance/etc. It's more that I don't tend to carry stock aircraft for too long - I could end up with £15-£25k that I don't know if I need in three days time or three months time.
Basically imagine a car garage but with really low stock turnover...
In which case, another space on Sterling or another current account would be the easiest option. 5% is a pretty decent interest rate but likely you'd only see the full benefits of this is if commit to leaving the money untouched which doesn't seem to be what you need.
Neptune188 said:
Day job is telling people what helicopters cost.
That's a business that could really take off. Gassing Station | Business | Top of Page | What's New | My Stuff