J
Jaco70
New Member
I’m struggling to find good advice online about borrowing money, long term, from my small limited company, and my accountant tends to go off on tangents and so I don’t want to ask him at this stage. Although I would eventually seek his advice before proceeding.
It’s easy to find advice on borrowing up to 10k and repaying it within nine months of the company year end, but I’m interested in larger sums over a longer period.
I own a small business in the construction sector, and we have built up a good bank balance over the past five years, far in excess of what is needed for general trading. The company has put some spare funds into a mutual fund, and I top up my pension each year by about 10k, but we still have a healthy balance.
Personally I have a 140k mortgage on my 500k house, which less than two years ago was costing me 900 a month, but is now over 1300.
I would rather be in debt to my business, than to a mortgage lender, and would also like the flexibility of not harming my credit rating if I missed a payment here and there for any reason. My rating is very high at present and I’m slightly obsessed with maintaining it. I’m not sure why, as I don’t intend borrowing any more money, as I’m in my mid fifties now, but I like the fact that it’s in a good state.
I know I could take more money out of the business in the form of dividends, but because I have another income stream in the form of a few rental properties, the tax hit makes it unattractive. The higher rate tax threshold is way lower than it should be by now, but that’s another story.
Sorry that it’s long winded but it seemed necessary to detail exactly what my circumstances are.
Thank you.
It’s easy to find advice on borrowing up to 10k and repaying it within nine months of the company year end, but I’m interested in larger sums over a longer period.
I own a small business in the construction sector, and we have built up a good bank balance over the past five years, far in excess of what is needed for general trading. The company has put some spare funds into a mutual fund, and I top up my pension each year by about 10k, but we still have a healthy balance.
Personally I have a 140k mortgage on my 500k house, which less than two years ago was costing me 900 a month, but is now over 1300.
I would rather be in debt to my business, than to a mortgage lender, and would also like the flexibility of not harming my credit rating if I missed a payment here and there for any reason. My rating is very high at present and I’m slightly obsessed with maintaining it. I’m not sure why, as I don’t intend borrowing any more money, as I’m in my mid fifties now, but I like the fact that it’s in a good state.
I know I could take more money out of the business in the form of dividends, but because I have another income stream in the form of a few rental properties, the tax hit makes it unattractive. The higher rate tax threshold is way lower than it should be by now, but that’s another story.
Sorry that it’s long winded but it seemed necessary to detail exactly what my circumstances are.
Thank you.
