Starting a business

houst69

Striker
is it acceptable to state your buying second hand equipment when applying for a business loan? Is it looked on favourably or does all equipment have to be brand new with warranty?
 


is it acceptable to state your buying second hand equipment when applying for a business loan? Is it looked on favourably or does all equipment have to be brand new with warranty?

The quality of the business proposal is all that matters, if you can source quality second hand equipment then why would you buy new? In terms of the business plan just ensure that you state the logic of doing this and why you made this choice. It is not enough to state "its cheaper" to do it this way as if the equipment is likely to have to be replaced then its not cheaper.........You could state that "I have compared the cost of purchasing equipment new as opposed to purchasing it 2nd hand or leasing it. I have also spoken to suppliers of the equipment to establish the reliability and lifespan of 2nd hand equipment and have negotiated guarantees on the 2nd hand equipment I intend to purchase". In short make it clear that you understand the advantages/disadvantages of all the available options and that your decision is based on research not just a gut feeling based on nowt.
 
The quality of the business proposal is all that matters, if you can source quality second hand equipment then why would you buy new? In terms of the business plan just ensure that you state the logic of doing this and why you made this choice. It is not enough to state "its cheaper" to do it this way as if the equipment is likely to have to be replaced then its not cheaper.........You could state that "I have compared the cost of purchasing equipment new as opposed to purchasing it 2nd hand or leasing it. I have also spoken to suppliers of the equipment to establish the reliability and lifespan of 2nd hand equipment and have negotiated guarantees on the 2nd hand equipment I intend to purchase". In short make it clear that you understand the advantages/disadvantages of all the available options and that your decision is based on research not just a gut feeling based on nowt.

Thanks, a helpful and non piss taking post, remarkable on the SMB, thanks again!
 
is it acceptable to state your buying second hand equipment when applying for a business loan? Is it looked on favourably or does all equipment have to be brand new with warranty?

If you were purchasing an existing business with assets, the assets are effectively second hand on completion of the transaction. No reason why a business plan can’t have second hand purchases included. What I would question is that if they were to break down, are you still able to trade?
 
If you were purchasing an existing business with assets, the assets are effectively second hand on completion of the transaction. No reason why a business plan can’t have second hand purchases included. What I would question is that if they were to break down, are you still able to trade?

How do you find out prices? just by looking on gumtree and facebook marketplace and getting the average price they are going for I suppose?
 
The quality of the business proposal is all that matters, if you can source quality second hand equipment then why would you buy new? In terms of the business plan just ensure that you state the logic of doing this and why you made this choice. It is not enough to state "its cheaper" to do it this way as if the equipment is likely to have to be replaced then its not cheaper.........You could state that "I have compared the cost of purchasing equipment new as opposed to purchasing it 2nd hand or leasing it. I have also spoken to suppliers of the equipment to establish the reliability and lifespan of 2nd hand equipment and have negotiated guarantees on the 2nd hand equipment I intend to purchase". In short make it clear that you understand the advantages/disadvantages of all the available options and that your decision is based on research not just a gut feeling based on nowt.

Some of the cheap new gear from places like Screwfix is pretty shite mind, particularly power tools.

Might be better to use the word warranty instead of guarantee.
 
How do you find out prices? just by looking on gumtree and facebook marketplace and getting the average price they are going for I suppose?

Ignore I was putting together a business plan, I’d look at how much I have in the budget, look at how long before the business has a turnover which is sustainable, put a good chunk of cash into working capital, then see what you can afford with the rest. Obviously, the above does not take into account other factors such as premises, stock or rent etc.

As another said, it’s difficult to second guess on so few details.
 
If you're doing a business plan outgoings/overheads can and should be pretty accurate. The income projections can be less so but in both cases the figures should have some tangible evidence to justify them (sources etc).

A business plan is just a guide to instil confidence in any backers and/or let you know if your idea is feasible. I did hundreds in a previous employment for people with a high degree of success tbf.
 
is it acceptable to state your buying second hand equipment when applying for a business loan? Is it looked on favourably or does all equipment have to be brand new with warranty?
What is the business if you don’t mind me asking?
I started mine 7 months ago, purchased both a brand new machine and a couple of second hand ones, didn’t effect my application.
If your on a similar industry to myself then I may have a few good contacts for second hand machinery...
 
What is the business if you don’t mind me asking?
I started mine 7 months ago, purchased both a brand new machine and a couple of second hand ones, didn’t effect my application.
If your on a similar industry to myself then I may have a few good contacts for second hand machinery...

Video gaming
 

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