A question for small business owners in Thailand

PJG · Specialist Joined: 06 Jan 2006 Posts: 177

Do not know if this has fed down to HH business's yet but in Bangkok small business is being shaken down by the Revenue/customs dept. It seems that the Govt. are short of money and have given out the instruction to collect more revenue from business with small business being hit hardest. The new revenue assesments are not based on your accounts but assessed on what the officer thinks you ought to pay!! The amount is negotiable with payments being made in the usual way.

prcscct · Posted: Sun Jul 15, 2007 5:42 am Post subject:

PJG · Specialist Joined: 06 Jan 2006 Posts: 177

In the same vein of difficulties for small business there is a credit squeeze on and Thai Banks are reluctant at the moment to lend money to small business. This usually means that there is very little liquidity in the system which will have a knock on effect of reducing growth in the economy. Long term things do not look good at the moment.

prcscct · Posted: Mon Jul 16, 2007 6:47 am Post subject:

The credit squeeze doesn't seem to apply to the consumer though. Every Thai bank is trying like crazy to give people credit cards. The last few months when my partner went into her bank, they actually seemed to get angry when she kept declining their offers.

Give it some time, all Thais will be burried in a mountain of debt. Sad

Pete

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"What America needs is a huge hypodermic needle of morality." Alice Cooper 21 Sept. 2007

ozuncle · Posted: Mon Jul 16, 2007 11:26 am Post subject:

barrys,
Thanks for that info on the visa.
Looks like Pagey has a bit of work to do.
Your advice re Lawyer sounds like the way to go for him, especially if he is without a trustworthy Thai wife/partner.

Cheers

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You only live once.

PJG · Specialist Joined: 06 Jan 2006 Posts: 177

I was talking about credit by way of Business Lending, Overdrafts etc. Most of the small business's (Thai owned) that I deal with are finding things tough at the moment. Markets are not very bouyant overseas so orders are hard to find, also the competition from other Asian producers is very fierce.

Of course the Banks are still keen to loan on credit cards as they make outrageous profit margins.

Pagey · Posted: Mon Sep 17, 2007 7:19 pm Post subject: Update

Thought I would post an update as so many people replied/read this thread and offered advice and encouragement as did the people I met in July.

I looked at 2 businesses and ruled one out for no good reason except it didn't feel right for me. The other one I am still interested in and I spent a lot of time visiting it and especially scrutinising the accounts. The initial profit I was quoted was vastly overstated which I knew as I was talking to the Farang owner last October and by phone just before I went to HH in July. (He is no longer there).

The asking price was approx 2.5 times quoted net profit. I have ascertained the profit for 2006 and the previous 52 weeks from July and based on this offered 3 times annual net profit. However, that is 50% lower than the asking price and the Thai wife insists she will not take any less than her original asking price so it's currently a stalemate. (She also is no longer in HH). The business did cost a lot to set up but the profits so far are not enough for a family to live on without an additional income which they don't have.

I believe the business has potential and will see me taking a profit for the foreseeable future. In fact before I left and now as I understand, takings are on the up.

From my point of view, I will not leave Saudi for LOS unless I have an additional income from a business as I do not want to struggle and the money and lifestyle here is comfortable. I have just been offered a new position with a 10% payrise which I have accepted. However, if the right business opportunity came in HH then I would leave. This new position also means I have had to cancel my planned trip in mid Oct but I will be there before xmas.

Cheers

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migrant · Posted: Mon Sep 17, 2007 8:06 pm Post subject:

As an accountant, I gotta say, good work Cheers

Too many businesses are overpriced, for whatever reason, everywhere (not just Thailand).

Good Luck!

elem · Specialist Joined: 23 Jul 2006 Posts: 203 Location: HH

Good luck w the new position, and keep us posted about potential future plans for a business in HH
Cheers

Regs from a rainy and cold (8°) Finland...brrr