Loan To Buy A Running Business In Thailand

[VespaSeeker]

Hi , can anyone tell me if a falang can borrow money from a bank or finance company to buy a business in Thailand , I have what ever deposit would be required but i do not keep much money in Thailand , I own a few properties in Thailand but thats about it . I can show funds in offshore account to cover amount of loan being requested .

Bassically just trying to get around transferring cash into Thailand .

Have searched but most places are advertising loans for condos not business's .

[BWPattaya]

I asked about this last year in Kasikorn Bank. Their answer was that the Bank Of Thailand forbids loans to foreigners. Common sense really as a foreigner could easily take the cash and leave the country.

A loan for soemthing like a car may be offered by the seller but they will want a guarantee. If you have property they may give a loan tied to that, but a loan to start a business, I doubt it.

[AZBill]

You say uyou have assets in other countries. If so you may want to consider opening up a deposit account in the Dominican Republic in local pesos. Such accounts have been paying around 14% + and I have used these accounts to generate retirement income. The interest can be paid out monthly so if you have say 300k in savings, you can generate over 100K baht a month just in interest. You have a debit card to just access the money from Thailand. Of course you need a cash nest egg. I have had no issue whatsoever with the bank in DR and their banking system is quite secure compared to say the US right now. There is no restrictions or fees for a foriegner to openan account and the interest is free of local taxes. Just a thought.

[clinique]

Perhaps you could eb abit morespecific, ie what is the collateral you would give the bank ?

Thai banks WILL give loans to farangs with Thai spouses OR a Thai company with farang shareholders.

We have just applied for a business loan with Bangkok bank and Krungsi bank..used real esate as collateral,,both have been approved,,

Alternatively if you have funds overseas on deposit you can;

1) transfer them to a Thai bank and LEAVE it in the foreign currency - using that as collateral,

2) place it on deposut with a Thai bankin YOUR country (if there is one) - and same again they will lend you money here against it,

3) have your home bank issue a guarantee or an Letter of credit for the collateral amount the Thai bank requires..

It is a falacy that thai banks do not lend for busiensses to foreigners (assuming the foreigner is complying with thai law..)

[Naam]

You say uyou have assets in other countries. If so you may want to consider opening up a deposit account in the Dominican Republic in local pesos. Such accounts have been paying around 14% + and I have used these accounts to generate retirement income. The interest can be paid out monthly so if you have say 300k in savings, you can generate over 100K baht a month just in interest. You have a debit card to just access the money from Thailand. Of course you need a cash nest egg. I have had no issue whatsoever with the bank in DR and their banking system is quite secure compared to say the US right now. There is no restrictions or fees for a foriegner to openan account and the interest is free of local taxes. Just a thought.

the Dominican Peso is surprisingly stable and i assume your "300k" refer to US-Dollars. but what about any guarantee for your cash in case the bank goes belly-up?

[VespaSeeker]

You say uyou have assets in other countries. If so you may want to consider opening up a deposit account in the Dominican Republic in local pesos. Such accounts have been paying around 14% + and I have used these accounts to generate retirement income. The interest can be paid out monthly so if you have say 300k in savings, you can generate over 100K baht a month just in interest. You have a debit card to just access the money from Thailand. Of course you need a cash nest egg. I have had no issue whatsoever with the bank in DR and their banking system is quite secure compared to say the US right now. There is no restrictions or fees for a foriegner to openan account and the interest is free of local taxes. Just a thought.

Hi , I have been looking at some information on DR Banks , seems there all covered by the DR Central Bank , but i have googled about 10 banks i found on a most popular banks in DR list and none of them have any information on high interest accounts and most websites where not in English .

Could you tell me which banks you used ?

Cheers

[VespaSeeker]

Perhaps you could eb abit morespecific, ie what is the collateral you would give the bank ?

Thai banks WILL give loans to farangs with Thai spouses OR a Thai company with farang shareholders.

We have just applied for a business loan with Bangkok bank and Krungsi bank..used real esate as collateral,,both have been approved,,

Alternatively if you have funds overseas on deposit you can;

1) transfer them to a Thai bank and LEAVE it in the foreign currency - using that as collateral,

2) place it on deposut with a Thai bankin YOUR country (if there is one) - and same again they will lend you money here against it,

3) have your home bank issue a guarantee or an Letter of credit for the collateral amount the Thai bank requires..

It is a falacy that thai banks do not lend for busiensses to foreigners (assuming the foreigner is complying with thai law..)

Hi , thanks for that ,very informative .

Not sure i would qualify under the terms you have set out there , i am not married to my Thai partner and my Thai company does not have falang share holders but maybe that could be changed , i would have to chat with my laywer about it .

Infact i think a chat with my lawyer 1st would be a good idea before heading to the bank .

As for the other options you pointed out maybe they would work for me .

Thanks again

[jazzbo]

If this is an existing (or running) business I would think that the current owners would have well established bank connections and persons at that bank who are intimately familiar with the financial operations of the compny. Why would you not start there?

[jazzbo]

OOPS 2x

Edited April 5, 2010 by jazzbo

[clinique]

Perhaps you could eb abit morespecific, ie what is the collateral you would give the bank ?

Thai banks WILL give loans to farangs with Thai spouses OR a Thai company with farang shareholders.

We have just applied for a business loan with Bangkok bank and Krungsi bank..used real esate as collateral,,both have been approved,,

Alternatively if you have funds overseas on deposit you can;

1) transfer them to a Thai bank and LEAVE it in the foreign currency - using that as collateral,

2) place it on deposut with a Thai bankin YOUR country (if there is one) - and same again they will lend you money here against it,

3) have your home bank issue a guarantee or an Letter of credit for the collateral amount the Thai bank requires..

It is a falacy that thai banks do not lend for busiensses to foreigners (assuming the foreigner is complying with thai law..)

Hi , thanks for that ,very informative .

Not sure i would qualify under the terms you have set out there , i am not married to my Thai partner and my Thai company does not have falang share holders but maybe that could be changed , i would have to chat with my laywer about it .

Infact i think a chat with my lawyer 1st would be a good idea before heading to the bank .

As for the other options you pointed out maybe they would work for me .

Thanks again

you dont need to be a shareholder , but for your own protection you must be asignatory somewhere surely ??? if not you should be..otherwise DONT be borrowing anymoney !

[VespaSeeker]

Perhaps you could eb abit morespecific, ie what is the collateral you would give the bank ?

Thai banks WILL give loans to farangs with Thai spouses OR a Thai company with farang shareholders.

We have just applied for a business loan with Bangkok bank and Krungsi bank..used real esate as collateral,,both have been approved,,

Alternatively if you have funds overseas on deposit you can;

1) transfer them to a Thai bank and LEAVE it in the foreign currency - using that as collateral,

2) place it on deposut with a Thai bankin YOUR country (if there is one) - and same again they will lend you money here against it,

3) have your home bank issue a guarantee or an Letter of credit for the collateral amount the Thai bank requires..

It is a falacy that thai banks do not lend for busiensses to foreigners (assuming the foreigner is complying with thai law..)

Hi , thanks for that ,very informative .

Not sure i would qualify under the terms you have set out there , i am not married to my Thai partner and my Thai company does not have falang share holders but maybe that could be changed , i would have to chat with my laywer about it .

Infact i think a chat with my lawyer 1st would be a good idea before heading to the bank .

As for the other options you pointed out maybe they would work for me .

Thanks again

you dont need to be a shareholder , but for your own protection you must be asignatory somewhere surely ??? if not you should be..otherwise DONT be borrowing anymoney !

OOps , should mention i am a Shareholder

[bellagrego]

You say uyou have assets in other countries. If so you may want to consider opening up a deposit account in the Dominican Republic in local pesos. Such accounts have been paying around 14% + and I have used these accounts to generate retirement income. The interest can be paid out monthly so if you have say 300k in savings, you can generate over 100K baht a month just in interest. You have a debit card to just access the money from Thailand. Of course you need a cash nest egg. I have had no issue whatsoever with the bank in DR and their banking system is quite secure compared to say the US right now. There is no restrictions or fees for a foriegner to openan account and the interest is free of local taxes. Just a thought.

YOU ARE OUT OF YOUR MIND, A degree from the Warton School, is definitely not in your resume.

[AliasJohn]

My business partner who lives in Bkk same as me and he is from the UK, this week had a loan for a business approved. He went to the Kasikorn Bank in Silom Road. Maybe try there. They were very happy to loan to him. Give them a call.

[bronto]

You say uyou have assets in other countries. If so you may want to consider opening up a deposit account in the Dominican Republic in local pesos. Such accounts have been paying around 14% + and I have used these accounts to generate retirement income. The interest can be paid out monthly so if you have say 300k in savings, you can generate over 100K baht a month just in interest. You have a debit card to just access the money from Thailand. Of course you need a cash nest egg. I have had no issue whatsoever with the bank in DR and their banking system is quite secure compared to say the US right now. There is no restrictions or fees for a foriegner to openan account and the interest is free of local taxes. Just a thought.

the Dominican Peso is surprisingly stable and i assume your "300k" refer to US-Dollars. but what about any guarantee for your cash in case the bank goes belly-up?

you do know your money is at high risk, 14% should tell you something!

[Naam]

You say uyou have assets in other countries. If so you may want to consider opening up a deposit account in the Dominican Republic in local pesos. Such accounts have been paying around 14% + and I have used these accounts to generate retirement income. The interest can be paid out monthly so if you have say 300k in savings, you can generate over 100K baht a month just in interest. You have a debit card to just access the money from Thailand. Of course you need a cash nest egg. I have had no issue whatsoever with the bank in DR and their banking system is quite secure compared to say the US right now. There is no restrictions or fees for a foriegner to openan account and the interest is free of local taxes. Just a thought.

the Dominican Peso is surprisingly stable and i assume your "300k" refer to US-Dollars. but what about any guarantee for your cash in case the bank goes belly-up?

you do know your money is at high risk, 14% should tell you something!

that goes without saying.

[JaoPaw]

I wish you would go without saying. You have absolutely nothing to say it is obvious!

You say uyou have assets in other countries. If so you may want to consider opening up a deposit account in the Dominican Republic in local pesos. Such accounts have been paying around 14% + and I have used these accounts to generate retirement income. The interest can be paid out monthly so if you have say 300k in savings, you can generate over 100K baht a month just in interest. You have a debit card to just access the money from Thailand. Of course you need a cash nest egg. I have had no issue whatsoever with the bank in DR and their banking system is quite secure compared to say the US right now. There is no restrictions or fees for a foriegner to openan account and the interest is free of local taxes. Just a thought.

the Dominican Peso is surprisingly stable and i assume your "300k" refer to US-Dollars. but what about any guarantee for your cash in case the bank goes belly-up?

you do know your money is at high risk, 14% should tell you something!

that goes without saying.

[VespaSeeker]

My business partner who lives in Bkk same as me and he is from the UK, this week had a loan for a business approved. He went to the Kasikorn Bank in Silom Road. Maybe try there. They were very happy to loan to him. Give them a call.

Cheers John ,

I bank with Kasikorn already for a few years so will start there and see what they say .