Taking out personal finance to buy a business expense

[Siggles]

Hi all. I need to buy a camera for my limited company. Although the company can afford it outright I want to get it and pay for it over the course of 12 months on a 0% finance agreement.

As the company is relatively new (2/3 years old) I don't think I can get it by applying in the companies name. I have good personal credit history. Can I buy it in my name, pay monthly for it under the personal agreement, and then reimburse myself each month from the business account. This seems like a relatively simple question but Ive looked over Google and cant find an answer. I'm guessing I use the Director's Loan account to record the transactions? Do I just credit it each month, then debit it. I guess I have to also have a company asset too.

Thanks

Siggles

ps. it will be exclusively for the company

 

[GLAbusiness]

You are not the company

If the company needs a camera and does not have the funds to buy one then I think the company has bigger problems than how you can buy it for the company. You give the impression that the company will be trading whilst insolvent

What am I missing?

 

[Ian J]

What am I missing?

Answering the question for starters

 

[Ian J]

Can I buy it in my name, pay monthly for it under the personal agreement, and then reimburse myself each month from the business account.

That's what I do with certain things even after 20 years and my company certainly isn't insolvent

 

[Scalloway]

If it is 0% finance then what you suggest is fine.

 

[JEREMY HAWKE]

That's what I do with certain things even after 20 years and my company certainly isn't insolvent

I think we might be skint too

 

[MyAccountantOnline]

Hi all. I need to buy a camera for my limited company. ... Can I buy it in my name, pay monthly for it under the personal agreement, and then reimburse myself each month from the business account.

...

Yes you can buy it and sell it to your company and the company can repay you. It will as you mention be a directors loan.

 

[Nico Albrecht]

camera and does not have the funds to buy one

Very few small businesses can go out and buy a camera. OP doesn't mention what type but let's say you want a decent commercial FLIR you are in for 40K easily. Maybe a professional video cam with some accessories on a budget from let's say RED 60 - 100k and that;s not the apex and so on. A cam can be easily cost more than a new car.

2/3 years in you look at 12- 20% interest for your business and personal 3- 5%. It is a no brainer to loan the money to your business at a much lower rate.

 

[Gyumri]

You give the impression that the company will be trading whilst insolvent. What am I missing?

I think the OP said his company was relatively new rather than being insolvent.

 

[DontAsk]

I think the OP said his company was relatively new rather than being insolvent.

He also never said the company could afford the purchase, quite the opposite, in fact.

 

[Gyumri]

That's right. But it can't get finance which is what the OP seeks and if it can afford to buy the camera outright then insolvency has nothing to do with the query.

 

[Newchodge]

You are not the company

If the company needs a camera and does not have the funds to buy one then I think the company has bigger problems than how you can buy it for the company. You give the impression that the company will be trading whilst insolvent

What am I missing?

the company can afford it outright

Looks like you missed reading the OP.

 

[The Byre]

Hi all. I need to buy a camera for my limited company. Although the company can afford it outright I want to get it and pay for it over the course of 12 months on a 0% finance agreement.

There is of course no such thing as 0% finance - that just makes the camera a vehicle for the finance profit, by imposing ridiculous penalties and conditions in the event of almost inevitable late payment.

People pay late because very often, the finance company (who often pay a reward to the retailer for each contract) play the equivalent of the card game 'Follow the Lady' by moving the address, changing the bank account, moving the contract to another company and all kinds of other tricks - and the moment payment arrives just one day late, you are locked into paying two or three times the amount over two or three years. It's all in the small print!

Shop around, buy that damn thing for less and pay cash - and have peace of mind.

Maybe a professional video cam with some accessories on a budget from let's say RED 60 - 100k and that;s not the apex and so on. A cam can be easily cost more than a new car.

Reds start at about £5,500 for the 6K Komodo. Even an Arri Alexa Mini LF 'only' costs about £60k.

But film production companies almost never buy cameras because of the structure of the film industry. A film is theoretically made by a company that is formed just for that film. It is that company and its film that is then sold or contracted (via sale-and-lease-back deals) to a series of distributors and must therefore only have one property - that one film and nothing else.

Films are physically, hands-on made by small companies that are contracted to the production company to do key tasks (FX, VFX, grips, cinematography, set building, audio, film score - and so on). And these companies always hire in the expensive stuff that is stipulated by the director and/or his cinematographer.

The corporate and music video people do buy cameras, but usually at the budget end of the market, so Panasonic, Canon, cheaper Reds, Black Magic - stuff like that. All south of £20k even with lenses.

 

[Mark T Jones]

There is of course no such thing as 0% finance - that just makes the camera a vehicle for the finance profit, by imposing ridiculous penalties and conditions in the event of almost inevitable late payment.

People pay late because very often, the finance company (who often pay a reward to the retailer for each contract) play the equivalent of the card game 'Follow the Lady' by moving the address, changing the bank account, moving the contract to another company and all kinds of other tricks - and the moment payment arrives just one day late, you are locked into paying two or three times the amount over two or three years. It's all in the small
.

Presumably you are basing that on something you saw / read about in the 1980s. There is far too much regulation and awareness around now for any reputable lender or retailer to get involved in those shenanigans

0% finance is an alternative form of discount - simples

 

[The Byre]

It happened to a friend of ours about ten years ago, so more recent than the 80s - but you are entering a credit contract that has to be paid by someone - i.e. the sucker client. And you are also paying a premium for processing and the possibility of default.

So my 30 cents worth stays - shop around: pay cash: pay less!

 

[Mark T Jones]

It happened to a friend of ours about ten years ago, so more recent than the 80s - but you are entering a credit contract that has to be paid by someone - i.e. the sucker client. And you are also paying a premium for processing and the possibility of default.

So my 30 cents worth stays - shop around: pay cash: pay less!

I don't disagree - I also try to dissuade retailers from offering it as it attracts a 'certain type' of customer

I exaggerated on the timings.

It was being marginalised and abandoned (the scammy variant) by republe retailers in the noughties- the Wonga crockery finally brought the legislation in.

 

[UKSBD]

A film is theoretically made by a company that is formed just for that film.

It's the same with TV programmes
Production company I know create new Limited companies for each programme they produce.

 

[DontAsk]

That's right. But it can't get finance

All we know is the OP doesn't think it will get finance due to being a new company.

which is what the OP seeks and if it can afford to buy the camera outright then insolvency has nothing to do with the query.

Correct.

 

[STDFR33]

Debit fixed assets
Credit directors loan account

Draw down from the DLA as you sit fit.