Getting Finance For Business Project

[imjustagirl]

How easy is it for a farang to get a loan in Thailand?

I need to get some finance for a business project. I am from the UK, my company holds two properties freehold (owned, not financed) to the value of 4 million baht and am seeking 500,000 baht finance. My partner in business is on retired visa(65 years old) with pension, and i am 33 with a job in the uk securing 60,000 baht approx a month(permanent part time position) and am on a 1 year renewable work visa(which i haven't had to use as just living in Thailand, not working here). Our company has not been trading in thailand, as income is from uk employment......have never used my work visa....

I want to start a business here but don't have immediate capitol - need approx 600,000baht.....

My questions are these:

can a farang or thai/farang company that hasn't been trading(but has property value) get a secured loan/mortgage on existing property as security? If so does anyone know the in's and out's of what is needed and banks that will help?

Any info or experiences in this area would be greatly appreciated and/or recommendations....i.e HELP!!! :-)

Thank you all for all and any advice!

[imjustagirl]

oh, and am not married to any thai nationals....so no thai husband options.....

Edited May 11, 2007 by imjustagirl

[samran]

why not just go for a personal loan in the UK. You'd probably get one in a snap, what you are looking for is about 8700 pounds. Less than a car loan!

I think you'd be out of luck getting a loan in Thailand.

[imjustagirl]

why not just go for a personal loan in the UK. You'd probably get one in a snap, what you are looking for is about 8700 pounds. Less than a car loan!

I think you'd be out of luck getting a loan in Thailand.

my credit is crap in UK, thanks to ex-husband......need other options....

[Irene]

How easy is it for a farang to get a loan in Thailand?

I need to get some finance for a business project. I am from the UK, my company holds two properties freehold (owned, not financed) to the value of 4 million baht and am seeking 500,000 baht finance. My partner in business is on retired visa(65 years old) with pension, and i am 33 with a job in the uk securing 60,000 baht approx a month(permanent part time position) and am on a 1 year renewable work visa(which i haven't had to use as just living in Thailand, not working here). Our company has not been trading in thailand, as income is from uk employment......have never used my work visa....

I want to start a business here but don't have immediate capitol - need approx 600,000baht.....

My questions are these:

can a farang or thai/farang company that hasn't been trading(but has property value) get a secured loan/mortgage on existing property as security? If so does anyone know the in's and out's of what is needed and banks that will help?

Any info or experiences in this area would be greatly appreciated and/or recommendations....i.e HELP!!! :-)

Thank you all for all and any advice!

First, talk to your banker stating that your company is prepared to mortgage your land of 4 million baht for a loan of 600,000 baht. Normally, Thai banks grant loan of between 50% to 70% of the security value.

If you do not have a banker in Thailand, start one now, then a few weeks later go and gauge his reaction.

With that security, all you need is the personal touch and/or your past records with the bank.

[naka]

why not just go for a personal loan in the UK. You'd probably get one in a snap, what you are looking for is about 8700 pounds. Less than a car loan!

I think you'd be out of luck getting a loan in Thailand.

my credit is crap in UK, thanks to ex-husband......need other options....

Yea, yea ... not my fault, bad partner blah, blah.

Anyway in that case your credit is crap worldwide ! This is the 'connected age'

and your crap credit rating will follow you forever and wherever.

Sorry too much ... no options, anywhere, with a bad rating ... anywhere.

Naka.

[Edonista]

My questions are these:

can a farang .....

The answer to questions starting with these three words is always "no".

Welcome to the "Land of Smiles" .

[torrenova]

Perhaps you could sell one of your properties.

Otherwise, have someone loan you the money but giving them a first charge over the property.

Or, sell and forward buy back the property for a higher price.

You won't get much luck in LOS.

[monty]

Don't be to quick to say a Farang cannot get loans!

I'm not going to say it's easy, but it certainly can be done.

They're not very keen on giving more then 50% on what Land and House department thinks the property used as collateral is worth though.

We have had a business loan running with Bangkok bank with a condominium as collateral.

Limit was around 50% of the land and house valuation of the condo (which is roughly 50% of actual value). The kind of loan where you pay interest only on the money you actually are using.

It is quite a lot of paperwork though, the bank wants to see a business plan, financial planning, lot's of pictures etc to make the file complete. Once it is approved though it is as easy as giving them a call you need another 500,000 and it's in your account the same day!

Just make sure to go in and make the interest payments every month.

[imjustagirl]

why not just go for a personal loan in the UK. You'd probably get one in a snap, what you are looking for is about 8700 pounds. Less than a car loan!

I think you'd be out of luck getting a loan in Thailand.

my credit is crap in UK, thanks to ex-husband......need other options....

Yea, yea ... not my fault, bad partner blah, blah.

Anyway in that case your credit is crap worldwide ! This is the 'connected age'

and your crap credit rating will follow you forever and wherever.

Sorry too much ... no options, anywhere, with a bad rating ... anywhere.

Naka.

Actually Naka, anything bad on a uk credit rating is removed after 5 years. A friend was bankrupted 8 years ago and last year got a 150,000 pound mortgage- so i do not face a lifetime of bad credit as you say....especially as a home owner and wage earner.

[imjustagirl]

Thanks for all your constructive advice. I think i will take up the offer of a friend to personally invest money for a share in business rather than doing what seems like a complicated procedure to get a business loan.

Thanks again everyone

[blizzard]

hi sweetie.

if your friend has any business savvy i dont think he would want to lend you money. you know due to yr ex husband and your bad credit rating.

people who cant handle their own personal finances are not good people to do business with.

maybe use should use your womanly charms to get the money, chicks in bkk do it all the time!

lots of ex amples of thais getting their bfs to build houses and then having the man putting the woman as sole owner. I DONT GET IT, BUT APPARENTLY IT HAPPENS.

Edited May 13, 2007 by blizzard

[Edonista]

hi sweetie.

if your friend has any business savvy i dont think he would want to lend you money. you know due to yr ex husband and your bad credit rating.

people who cant handle their own personal finances are not good people to do business with.

maybe use should use your womanly charms to get the money, chicks in bkk do it all the time!

lots of ex amples of thais getting their bfs to build houses and then having the man putting the woman as sole owner. I DONT GET IT, BUT APPARENTLY IT HAPPENS.

It happens to Thai nationals who can leverage on the fact that only Thai citizens are allowed to own land. Unfortunately the OP is farang so she will have a much harder time in getting real estate for free (at least in Thailand, while she still has excellent chances in UK I think )

[Fred Sanford]

Don't be to quick to say a Farang cannot get loans!

I'm not going to say it's easy, but it certainly can be done.

They're not very keen on giving more then 50% on what Land and House department thinks the property used as collateral is worth though.

We have had a business loan running with Bangkok bank with a condominium as collateral.

Limit was around 50% of the land and house valuation of the condo (which is roughly 50% of actual value). The kind of loan where you pay interest only on the money you actually are using.

It is quite a lot of paperwork though, the bank wants to see a business plan, financial planning, lot's of pictures etc to make the file complete. Once it is approved though it is as easy as giving them a call you need another 500,000 and it's in your account the same day!

Just make sure to go in and make the interest payments every month.

guess there are loan sharks here