Home – New Forums Money matters Sole Trader & Finance

  • This topic is empty.
Viewing 3 posts - 1 through 3 (of 3 total)
  • Author
    Posts
  • #966019
    rvnd
    Member
    • Total posts: 40
    Up
    0
    ::

    Hey all,

    I am considering simply getting going as a sole trader to keep initial costs down. This is a questions specifically to other sole traders out there.

    Did you discover that obtaining bank finance for say, a new car, problematic or not?

    #1015494
    timlea50
    Member
    • Total posts: 19
    Up
    0
    ::

    Hi Rvnd,

    As a sole trader – many options for funding are reduced.

    For example with factoring and invoice discounting there are only a couple of factoring companies that will finance sole traders. This is because the finance company cannot take a “charge” over the assets of the business (in a similar way to a charge over a property). With a Pty Ltd they can take a fixed and floating charge over the business – which also gives them the power to appoint a receiver.

    Certainly the issue of being a sole trader will become increasingly a problem as you get bigger.

    Good luck to all
    Tim lea
    Partner,
    http://www.cashstream.com.au

    #1015495
    rvnd
    Member
    • Total posts: 40
    Up
    0
    ::

    Thanks, I understand. For now, I think that I will go the ST route, and reconsider if I want to expand. Cheers.

Viewing 3 posts - 1 through 3 (of 3 total)
  • You must be logged in to reply to this topic.