Governor of the Bank of England gives potentially bad financial advice to van buyer
I’ve recently read an online news story from the BBC business section about Mike Benson, the hard working owner of a small business that was refused a loan of £10,000 by his bank to buy a much needed Ford Transit van. This happened despite the fact that Mr. Benson’s company turned over nearly £65,000 last year. He wrote a letter to Bank of England governor Sir Mervyn King detailing his anger and frustration at being given a “patronising” offer of financial counseling instead of the loan from the Bank of Scotland. In a surprising reply from Sir Mervyn, he seemingly acknowledged the poor support coming from British banks in regards to lending to small businesses and advised Mr. Benson to look elsewhere for the money, to perhaps try one of the new banks operating in the UK, such as Swedish firm Handelsbank. In the end, Mr. Benson decided to fund his new van himself and not through the traditional banking methods that have let a lot of customers down in recent years. To read the full BBC article, please click here.
This story sadly is not a rare one. Many businesses and individuals are experiencing the same difficulties in obtaining funding options with finance being hard to come by in these constrained economical times. So what can you do if you need to purchase or lease a vehicle? Well, as you can see from Mr. Benson’s experience, often times a bank loan is not the best way for a company to finance a vehicle. Other methods can be more flexible, more tax efficient, more VAT efficient and easier to obtain.
Hire purchase, contract hire, and leasing all have different benefits and may be a better choice for your business needs. It’s worth taking a look at what these options can provide. You can find more details on our finance section of the website.
We here at Low Cost Vans understand the needs and changing circumstances of our customers, so if you are in the market for a new vehicle now or just need more advice, then give us a call. We are happy to help.
This story sadly is not a rare one. Many businesses and individuals are experiencing the same difficulties in obtaining funding options with finance being hard to come by in these constrained economical times. So what can you do if you need to purchase or lease a vehicle? Well, as you can see from Mr. Benson’s experience, often times a bank loan is not the best way for a company to finance a vehicle. Other methods can be more flexible, more tax efficient, more VAT efficient and easier to obtain.
Hire purchase, contract hire, and leasing all have different benefits and may be a better choice for your business needs. It’s worth taking a look at what these options can provide. You can find more details on our finance section of the website.
We here at Low Cost Vans understand the needs and changing circumstances of our customers, so if you are in the market for a new vehicle now or just need more advice, then give us a call. We are happy to help.
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