Private Financing

[banchangbob]

Looking to raise a small amount of capital.....about 350,000-500,00 is there any (reputable) private finance available for farang......in the same way as you'd go to a loan shark in N.America. I do understand the pitfuls of this, but I'm just investigating as it seems too hard as a farang to raise capital for main stream thai banks.

I'd be interested in any thoughts

[bojo]

Looking to raise a small amount of capital.....about 350,000-500,00 is there any (reputable) private finance available for farang......in the same way as you'd go to a loan shark in N.America. I do understand the pitfuls of this, but I'm just investigating as it seems too hard as a farang to raise capital for main stream thai banks.

I'd be interested in any thoughts

A friend of mine (UK) loaned 3M baht and paid 3% interest a month from a wealthy Thai. Expensive but as a short term bridging loan,so to speak, it did the job.

I've often thought a good way to raise capital would be to offer 7 or maybe 8% (per annum)to investors. Especially now as interest rates are so low worldwide, I would imagine with the right security(title deeds) many foreigners would go for it. After all if they we're to invest in real estate, a developer might offer about 7/8% yield over a few years. I'm not sure of the legal issues but any decent lawyer worth his salt, would have the answers.

Regards Bojo

[Farma]

If you require that amount to purchase a building etc and as an alternative to using loan sharks, one method I’ve seen Thais using is to work out a payment plan with the seller. Usually there’s no reduction in the sellers asking price but also no interest is charged on the money owing.

They write up a contract which includes an initial payment followed by X number of payments maybe 6 months apart until the full amount is paid off. On completion the deeds are turned over to the buyer.