VAT on Commercial Business VAN

ThomasH

I have let's say €15000 in my personal bank account and would like to purchase a secondhand commercial van for my business. Is it best to transfer it to my business account as a loan and then buy the van?

Or

If I take out a personal loan for €15000, will I first transfer the money to the business account as a loan and then second can I set up the direct debit through my business account to pay for the monthly lease?

Thanks in advance.

is_that_so

I would use the business account, get a loan and transfer the loan or your own cash into the account. It is easier to manage that way and easier to explain. With a loan you can also put the interest paid against your tax bill.

ThomasH

I would use the business account, get a loan

Get a business loan through the business account or get a personal loan and transfer to business?

is_that_so

ThomasH wrote:

Get a business loan through the business account or get a personal loan and transfer to business?

Talk to your bank and see what they will give you.
You could try and get the business loan but I would say it is probably too small at €15K. Also ask the bank about leasing, especially as you are looking at a vehicle.

Leasing usually means a new vehicle so you might also consider asking a van dealer how that would work and see if you can get a better deal that way. I know that Ford have leasing deals and I'd imagine most of the others do as well.

If none of these work out or suit you, then I would suggest a personal loan, transfer it into the business account and make repayments from that business account.

dahamsta

€15k isn't too small for a business loan.

Leasing can apply to new or used cars or vans.

adam

antoinolachtnai

You should always borrow from within the business if possible, so as to benefit from getting a tax allowance on the interest. (The academics call this the 'tax shield'.)