Business Borrowing
Discussion
I run a used car sales business. Been going 10+ years and profitable throughout.
Took out a good bit of working capital from the 'stock pot' to put it into a commercial property and renovation. The new site allows the holding of more cars and more efficiency and around 8-10 weeks from now moving across.
In the motor trade we generally tend to use stock funding and I have that in place. I'm not seeking to extend or add my stock funding pot.
I ideally want to borrow a lump sum loan that I pay off which will replace the chunk of working capital I had taken out to invest into the commercial property.
I think the commercial unit has increased in value and have booked a couple of valuations for the next week to confirm that.
Can I remortgage the commercial unit in the same way if I was to buy a knackered 3 bed ex council house for £100k and fix it up and have it revalued at £150k I could do?
I don't want to take on more unit stock funding as with lower working capital by the time you prep all the cars, and sink money into the transport costs, various bits and pieces it then takes more of your working capital out of circulation.
Ideally I would like a 3-5 year lump sum loan and then after its paid off I do the same again, and then again as that way I should grow my own pot of money in conjunction with the stock funding money I have. Unit stock funding is expensive and I imagine this way of borrowing should be substantially cheaper.
As soon as most places or banks we speak to hear car sales and lump sum loan they seem to think we will vanish into the sunset.
I've no concerns about the business and no objection to house, commercial property or other guarantees being made.
Does anyone have any advice in the the field of raising working capital or borrowing, I would be most happy to hear.
I'm good at buying and selling used cars, I don't know a huge amount of know anyone that does about how to raise money to scale a business.
For context I am looking at a loan of £500k to £750k.
I probably have around £350-400k equity in my own residential property and am open to a 'equity release' remortgage if that works out cheaper aswell but wanted to explore business funding first. For me having money in the bank doesn't make money, its better as stock that keeps getting flipped and sold.
Thank you for reading and if anyone can offer any advice.
Took out a good bit of working capital from the 'stock pot' to put it into a commercial property and renovation. The new site allows the holding of more cars and more efficiency and around 8-10 weeks from now moving across.
In the motor trade we generally tend to use stock funding and I have that in place. I'm not seeking to extend or add my stock funding pot.
I ideally want to borrow a lump sum loan that I pay off which will replace the chunk of working capital I had taken out to invest into the commercial property.
I think the commercial unit has increased in value and have booked a couple of valuations for the next week to confirm that.
Can I remortgage the commercial unit in the same way if I was to buy a knackered 3 bed ex council house for £100k and fix it up and have it revalued at £150k I could do?
I don't want to take on more unit stock funding as with lower working capital by the time you prep all the cars, and sink money into the transport costs, various bits and pieces it then takes more of your working capital out of circulation.
Ideally I would like a 3-5 year lump sum loan and then after its paid off I do the same again, and then again as that way I should grow my own pot of money in conjunction with the stock funding money I have. Unit stock funding is expensive and I imagine this way of borrowing should be substantially cheaper.
As soon as most places or banks we speak to hear car sales and lump sum loan they seem to think we will vanish into the sunset.
I've no concerns about the business and no objection to house, commercial property or other guarantees being made.
Does anyone have any advice in the the field of raising working capital or borrowing, I would be most happy to hear.
I'm good at buying and selling used cars, I don't know a huge amount of know anyone that does about how to raise money to scale a business.
For context I am looking at a loan of £500k to £750k.
I probably have around £350-400k equity in my own residential property and am open to a 'equity release' remortgage if that works out cheaper aswell but wanted to explore business funding first. For me having money in the bank doesn't make money, its better as stock that keeps getting flipped and sold.
Thank you for reading and if anyone can offer any advice.
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