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EmmaRoid

Help To Buy Will Encourage Entrepreneurial Endeavours And Drive The Recovery

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I could have set up a business if Gidiot had let house prices continue to fall, but then H2B stopped that silly way of thinking.

My hatred to this piece of scum must be akin to how coal-miners saw Thatcher.

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Quote: “Moreover, it follows from the paper’s findings that rising house prices could be expected to increase the supply of budding entrepreneurs.”

This says otherwise:

http://www.cambridgenetwork.co.uk/news/britains-skilled-workers-and-entrepreneurs-are-leaving/

(Not that that link was needed to point out the obvious ridiculousness of the above quote!).

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I've read a few times over the last few years that small business finance is often dependent on having a home to secure it on.

Thats the basic premise. No matter that HTB is completely ******ing up the market and crowding out even more buyers than it helps

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So a massive mortgage on a house that has to be paid in full every month encourages people to take more risks and set up on their own?

Surely the best thing for that would be low prices and something like a Citizens Income.

If my basics were covered every month I could take far more risks.

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I could have set up a business if Gidiot had let house prices continue to fall, but then H2B stopped that silly way of thinking.

My hatred to this piece of scum must be akin to how coal-miners saw Thatcher.

Do any govt ministers admit to this viewpoint openly?

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In other words, banks will only lend you money (to start a biz) if you put up the equity in a house.

Circle jerk

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help to buy will increase the pool of 'better' entrepreneurs driving growth in the economy.

How can adults lack such a basic understanding of causality, correlation, causation and such forth? Not to mention basic economics and human nature.

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Do any govt ministers admit to this viewpoint openly?

They think b2l landlords are entrepreneurs, i truly believe they have no idea about the current state of affairs.

Why would they, most are from wealthy families.

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In other words, banks will only lend you money (to start a biz) if you put up the equity in a house.

Circle jerk

Basically it.

To say that banks are now beyond useless and on;y feeding a self propagating ponzi scheme is putting it mildly.

UK economic performance, the growth of debt, disparity, reliance on immigration for growth, exporting of our furutre menas of production and sell off of anything not bolted down to a point where the fixed assets of this country are largely foreign own are all pointers to abject failure of the economy, not of its successful funding via property backed business loans.

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In other words, banks will only lend you money (to start a biz) if you put up the equity in a house.

Circle jerk

I've got the money, and it's not going into buying an massively overinflated house.

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I've read a few times over the last few years that small business finance is often dependent on having a home to secure it on.

Too many times in past few years I've read VI's outraged banks want security for lending. "Shouldn't have to risk the house." Well raise your business finance some other way then. Maybe send an email around the networks of property forums, but I think they're only interested in bmv and quick flips, and new rules came out beginning of this year tighening the raising funds for such investments.

Times earlier this week reported that small businesses wary of borrowing, and banks also making it an unwelcoming for small businesses who do apply for debt. http://www.housepricecrash.co.uk/forum/index.php?/topic/199999-imf-warns-of-potential-risks-to-global-growth-too-much-talk-of-rates-increasing/#entry1102557782

Ending of global stimulus, prospects of interest rate rises, "go-go HTB wealth creation", to start a business competiting against zombie firms, who need to be liquidated and restructured, also into a HPC, where too many older owners think all their HPI is locked in.

Access to bank finance is improving for small business, but application processes are still putting companies off from applying in the first place, according to a BoE report. ... loan application processes were "drawn out" for small companies...

..A rise in interest rates of 1 per cent would cost business an extra £2.1 billion in borrowing costs over the next 12 months, research has found. ... "Businesses need to be realistic and start budgeting for higer cost of debt now..."

..Seperately, the insolvency firm Begbies Traynor has found that 218,000 small businesses would face financial difficulties if interest rates rose by 1.5%. ...A survey of 700 small companies found 79 percent do not believe that the recovery is "steady", with their caution dampening their desire to invest and raise finance.

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Small business funding via personal property backed loans is a often scam.

The bank gets to charge an extortionate rate when in fact the collateral is the house, therefore should only attract the going rate for that risk.

High house prices mean that any business failure will likely mean the failed business owner will never recover their position, a significant deterrant to taking the risk in the first place.

The market is horribly distorted, central bank slush funding of large corporates has occured, QE reduced their borrowing costs leaving smaller enterprises high and dry - widespread supression of debt rates has helped thos at the top the most.

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As I remember it there are three stages of a small business...

1, The bank lends you money against a personal guarantee backed by a charge on your house.

2, The bank is happy to release you from the personal guarantee and lend money against the assets of the company.

3, The company has sufficient funds that it rarely needs to use it's unsecured overdraft facility.

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As I remember it there are three stages of a small business...

1, The bank lends you money against a personal guarantee backed by a charge on your house.

2, The bank is happy to release you from the personal guarantee and lend money against the assets of the company.

3, The company has sufficient funds that it rarely needs to use it's unsecured overdraft facility.

The three stages of my small business looks a bit different.

1. Rent on the cheap and save all my extra cash.

2. Buy a small business with saved up extra cash.

3. Rent a nice place and grow small business to medium sized business.

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I've met several 30 - 35ish people recently who have raised money for business expansion via a crowdfunding website. One for for the expansion of a streetfood stall into a static stall, he raised 30k and did not offer funders anything in return other than getting a certificate and a massive thank you, not even a free curry, yet people went for it. Really interesting. Possibly helps that this stall is in between the City and Hoxton and I think a lot regulars donated. I don't know if he rents but I am sure his home owning status has nothing to do with this.

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