Small Business Loan Needed

[deusbelli]

My Thai wife has a small clothing business. The business is profitable and has been for 3 years. Now she is ready for the next step; to expand her company. What kind of accounting system does she need for the banks here to take her seriously? Is there some minimum amount she needs to make per month for them to talk to her? She is looking to borrow about 100,000 THB and she makes about 15k per month. The new store front is expected to make 2 to 4 as much. Any advice?

[ShopBoy]

does she pay taxes ?

all she need is to have a proper company set up and pay taxes on her profits than the bank will take her seriously

[Pormax]

I would be surprised if a bank will be interested unless you can show yearly accounts signed off by a registered accountant or have a Chanod on land or property you can give as security.

[monty]

She needs to have her business registered for at least 6 months. Can be a simple sole proprietership (which most small shops are).

She needs to have tax declaration on her income, tax itself can be zero or very little, first 150,000 baht profit/ year is tax free as a sole propr. anyway.

You can pay tax on whatever you declare, can be higher then actual income. However, the banks will want to see the last 6 months of bank statements, and mainly they will want to see a very steady cashflow moving through the account, in line with what you declare to the tax department...

With that paperwork she could apply for a personal loan, but most banks will only give between 3 and 5 times monthly nett income. Won't be cheap interest wise though...

Pure business loans and overdraft accounts are only available with collateral.

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[jamescollister]

Banks are strange creatures and I will never understand how they think. In my case have a limited partnership with the wife, Not made a penny since 2009, pay our basic company tax etc every year, but lose money every year. Just keep the business ticking over. Now on paper is has a good value, but it makes no money.

Last year, thinking the world economy was about to turn, went to the bank and asked about a loan, to get things up and running for a new boom time. Not looking for a massive amount, just enough to be fluid. Banker comes out to have a look and says no problem 5 Mil Baht, my jaw dropped.

I was hoping for 200,000 Baht, world has not got better and we have not taken up the loan. I would not loan me any where near that much, but if I have ever to do a runner, I will be seeing the bank a few days before. Jim

[anon7867763]

Banks are strange creatures and I will never understand how they think. In my case have a limited partnership with the wife, Not made a penny since 2009, pay our basic company tax etc every year, but lose money every year. Just keep the business ticking over. Now on paper is has a good value, but it makes no money.

Last year, thinking the world economy was about to turn, went to the bank and asked about a loan, to get things up and running for a new boom time. Not looking for a massive amount, just enough to be fluid. Banker comes out to have a look and says no problem 5 Mil Baht, my jaw dropped.

I was hoping for 200,000 Baht, world has not got better and we have not taken up the loan. I would not loan me any where near that much, but if I have ever to do a runner, I will be seeing the bank a few days before. Jim

please tell me what bank and branch this is , I'll be there on Monday morning 1st thing !

[TommoPhysicist]

Banks are strange creatures and I will never understand how they think. In my case have a limited partnership with the wife, Not made a penny since 2009, pay our basic company tax etc every year, but lose money every year. Just keep the business ticking over. Now on paper is has a good value, but it makes no money.

Last year, thinking the world economy was about to turn, went to the bank and asked about a loan, to get things up and running for a new boom time. Not looking for a massive amount, just enough to be fluid. Banker comes out to have a look and says no problem 5 Mil Baht, my jaw dropped.

I was hoping for 200,000 Baht, world has not got better and we have not taken up the loan. I would not loan me any where near that much, but if I have ever to do a runner, I will be seeing the bank a few days before. Jim

I think they were after lending then hopefully foreclosing on the farm. I may be wrong.