Home – New Forums Starting your journey Line of credit funds to Bussiness account

  • This topic is empty.
Viewing 5 posts - 1 through 5 (of 5 total)
  • Author
    Posts
  • #987989
    TheGaz
    Member
    • Total posts: 3
    Up
    0
    ::

    Hi all. What a great site! I’ve only been a member a couple of days now but have found heaps of great advice for starting my own company. (not “as” scared now).

    Hope someone can heap with a question. I have a line of credit account to purchase a small courier run and van. I have recently sent up a business bank account. Should I transfer all funds to the business bank account and make purchases from that? Or is it ok to purchase from LOC account as I will have records.

    Thanks in advance.
    Gary

    #1165154
    TehCamel
    Member
    • Total posts: 873
    Up
    0
    ::

    I’m working on the assumption that you’ve already paid for your vehicle, so you have surplus funds in the LOC.

    I would recommend leaving the funds in the LOC until you need them.
    If you draw down the funds and put them in an operational account, then you have to pay interest on the full value of teh drawn-down debt, even if you haven’t spent it

    #1165155
    Anonymous
    Guest
    • Total posts: 11,464
    Up
    0
    ::

    Hi Gaz,

    I’m not the right person to answer your question (and in any case, Andy’s comments would seem to make sense), but I did want to welcome you to Flying Solo.

    Thanks for your feedback on the site too – you’ve made our day :)

    Jayne

    #1165156
    TheGaz
    Member
    • Total posts: 3
    Up
    0
    ::
    TehCamel, post: 191188 wrote:
    I’m working on the assumption that you’ve already paid for your vehicle, so you have surplus funds in the LOC.

    I would recommend leaving the funds in the LOC until you need them.
    If you draw down the funds and put them in an operational account, then you have to pay interest on the full value of teh drawn-down debt, even if you haven’t spent it

    Hi TehCamel;191188 thanks for the quick reply. I actually haven’t purchased anything with LOC money yet. I will buying a courier run sooon which comes with a van. I wanted to know should I transfer funds to Buss Acc to make purchases through the Buss Acc for tax purposes or just transfer direct from LOC account. Thanks again and hi Jayne great to be here!

    #1165157
    TehCamel
    Member
    • Total posts: 873
    Up
    0
    ::
    TheGaz, post: 191305 wrote:
    Hi TehCamel;191188 thanks for the quick reply. I actually haven’t purchased anything with LOC money yet. I will buying a courier run sooon which comes with a van. I wanted to know should I transfer funds to Buss Acc to make purchases through the Buss Acc for tax purposes or just transfer direct from LOC account. Thanks again and hi Jayne great to be here!

    The account you’re making the purchases from makes no difference to tax, is my understanding. As long as it’s an account that’s under the business name.

    direct from the LoC should be fine

Viewing 5 posts - 1 through 5 (of 5 total)
  • You must be logged in to reply to this topic.