Business Loan - For Start Up Thai Company

[kopite]

hi

need help with the following scenario for my thai wife,

she/we are looking to buy an existing business in thailand, would if be possible for her to get a business loan using either of the following methods as collateral,

1. myself acting as the guarantor using my property in europe or my trading company in europe showing statements etc..

2. our thai family acting as guarantor using their property portfolio as collateral.

any suggestions on how this can be done.

*edit* we would be depositing initially 1.5 million baht into her account, but with little deposits made for a few years in thai account due to living elsewhere.

many thanks

[Soutpeel]

Usually for buiness loans, they will want business plans etc etc...not easy to get a loan this way.

Option 1: Forget it.....highly unlikely this would be entertained by a Thai bank

Option 2: Maybe, see above

How about option 3: You apply for the loan with a UK bank and use your property in Europe as collateral, certainly a better option ??

[richardt1808]

spot-on advice above.

Loans are possible for expansion of an existing Thai business with a track record, but banks are not going to hand out money for new businesses and there is no such thing as them funding informal start-ups.

[ericthai]

You say her family has land. If the value of the land is valued at more than what you want to borrow then you should be able to use the land as collateral.

My wife got a loan using her land as collateral. Not sure if she had to tell them what she wanted the money for. which she used the money to re-do her mom's house adding on to the house and putting in air-con, ceramic tile etc.

[Soutpeel]

You say her family has land. If the value of the land is valued at more than what you want to borrow then you should be able to use the land as collateral.

My wife got a loan using her land as collateral. Not sure if she had to tell them what she wanted the money for. which she used the money to re-do her mom's house adding on to the house and putting in air-con, ceramic tile etc.

Yes, but this loan was for home improvments..ie a personal loan, the OP is looking for a business loan, not the same thing.

[ericthai]

You say her family has land. If the value of the land is valued at more than what you want to borrow then you should be able to use the land as collateral.

My wife got a loan using her land as collateral. Not sure if she had to tell them what she wanted the money for. which she used the money to re-do her mom's house adding on to the house and putting in air-con, ceramic tile etc.

Yes, but this loan was for home improvments..ie a personal loan, the OP is looking for a business loan, not the same thing.

I know it's not the same thing, the point I'm trying make is don't tell the bank the money is to start a business, as long as the land is valued at more than the loan amount needed then there should not be a problem. i guess I should have made it a little more clear what I was trying to say. my wife did tell the bank she was using the money to fix up her mom's house, but nobody ever came to look and see what is going on with the house or if improvements were actually made, as soutpeel pointed out it's a personal loan so you can use it for whatever you want.