Running a small business with zero credit facilities

It's kinda' tough but I think it's the only way to do it.

I want to be free from the man, I don't want to be tied to a credit card bill or be deep into an overdraft facility so I refuse to go down that road. I don't think it's common and no one seems to listen to me when I tell them that you don't need to get into debt to make money. They just look at me and take no notice, maybe because I don't talk business like or talk about money this and money that, it's maybe because I drive an older car without a private number plate on it so how could I possibly be taken seriously. Who knows, but I like to think of it as a good deterrent for all the wanky business talk that you hear, you can slide through life and no one takes notice because you're not flash and pretty uninteresting.

I have a small nut (not small nuts, a small nut)

I was talking with someone who has a small business of their own and they use credit facilities, each to their own but they were adamant that it's the only way to do business. I only see one way to look at it though - Lower your outgoings to just a mortgage payment and utility bills and no one owns you other than your house, pay off the house and you're jamming. That's it.

  • The benefit would be that if you make a good profit on the work you sell you'll be comfortable, you don't need to do that weekend shift because theres a loan payment due, you don't need to take on a job that you hate because you overspent on your credit card last month. Pretty sweet deal, it's the only way to live I think.
  • The downside that I can see is when a machine breaks or you need a new something, a new vehicle can be bought on hire purchase or whatever other way there is and a new piece of machinery can be put on the credit card. Spread the cost. It's soar when you need to stump up the cold hard cash for something.

Looking at the ups and downs I still disagree that you can't live and run a business without any line of credit. I started with a few grand that I saved up from sub contracting on building sites, building houses and doing some weekend stuff. It's tricky to save up some doh when you've got 2 young kids and a healthy mortgage payment but no debt meant that anything I made was ours after the house, food and utilities were covered. Then I had the brilliant idea of doing my own thing direct to the clients and never set foot on a building site again. 

So following the plan to be free of 'the man' you need be cool driving an older higher mileage car. I had one car I used of work and when I got rid of it it had about 175,000 miles on it, my brother has it now, I swapped him for a bike and £90 his way. The car still works as it should, I just needed something bigger, the bike is great too.  My work vehicle I use now is a Nissan Terrano 4x4 that cost me just under a thousand quid. The annoying thing is that it just went in for an MOT and will cost about £1,000 to fix bits and put it through the MOT. No credit card to spread the cost, cold hard cash as per usual, Nothing else for it. I suppose you could look at it as about 3 monthly payments on a newer car that's financed. 


If you only wear work clothes too it can help to save the pennies. It might be because I work all the time but I seem to only have clothes with paint, glue or rips in them. I could probably sharpen myself up but I'm in a village in the wilderness and don't really see anyone so scruffiness is acceptable, Gemma and the boys are cool with it. I've got like 2 sets of good clothes when we venture out. Pretty much just work clothes that haven't been used for work yet.

So thats that, just a thought and a ramble. Get free of the man, work hard and lower the outgoings. It's not too hard. If you are into living that way you might know of Mr Money Moustache, his website is pretty great and filled with everything and anything useful in going down this road. I got the picture above from his site. It makes sense. 

Onwards :)