Any ideas?

Southsider1

Hi.

I need some advice please. I need to raise €15k FAST to get my business out of a rut. My bank are putting up obstacles all over the place and I can't find a way forward. Any other places I should look. Tried Credit union etc...

Ashlinggnilsia

what kind of business is it?

Southsider1

Retail

Ashlinggnilsia

What type of product? Clothing, Hardware etc?

w123

What's the money for? Rent, Wages, to pay suppliers, to buy stock, or for a balancing amount on your p35?

Southsider1

Supplier and rent. I have cash on the way from sale of property but may take a few weeks.

kenbrady

Southsider1 wrote: »

to get my business out of a rut.

Southsider1 wrote: »

Supplier and rent. I have cash on the way from sale of property but may take a few weeks.

Is it to get out of a rut or delay the end. If you need to sell a property to fund a retail business something is not right.

w123

+1

Or, take the credit from your supplier and your landlord - either with their consent (the better option) or not. Tell them that you will pay when your money comes through.

antoinolachtnai

Yes, be really careful here. If you have a profitability issue and you can't see yourself coming back to profitability within a fairly short period of time, then be really careful about racking up more debt.

I know it is not what you want to hear, but it is worth considering.

drunkmonkey

Credit Card? It's saved my ass once or twice. Make sure you can pay it back quickly though. Don't use it as a loan.

wishful thinker

antoinolachtnai wrote: »

Yes, be really careful here. If you have a profitability issue and you can't see yourself coming back to profitability within a fairly short period of time, then be really careful about racking up more debt.

I know it is not what you want to hear, but it is worth considering.

+1

you may have the passion for the business but reality must kick in at some stage........

• Have you looked at the longer term cash flows - i.e. how are you financing your business for the next 3/6/12 months?..........are you using the money from the sale of your property?
• Is your business seasonal?....when is your busiest period?
• Do you know your break even point ???? - i.e. how many sales you need to make to cover your outgoings
• If you know your break-even, have you failed to reach it in the last number of months???
• Have you tried re-negiotating your rent with the landlord?
• Do you have any bad debtors?
• Are your stock levels very high? is it necessary to have that level of stock?....is it possible to do something innovative to get people in the door.....sale (not original), form alliances with associates business (if clothes shop.....then an alliance with make-up, hairdresser, spa treatment, restaurant.......as someone has to wear the clothes for a special occasion)?

The above are questions that you probably need to ask yourself, they are meant to highlight what position your business is really in re:cashflow for now and the very near future.

wish you the best

Southsider1

No. The business is profitable. The problem lies in that I expanded and bought quite a bit of new equipment just over 80k worth: refridgeration, deli fit out etc. on the understanding that my bank was going to finance it. I was given the go ahead from my Manager three months ago. He was moved in January and his replacement says he can no longer sanction it. Yes, I know I should have waited until the cash was in my account but, hindsight eh?

wishful thinker

Southsider1 wrote: »

No. The business is profitable. The problem lies in that I expanded and bought quite a bit of new equipment just over 80k worth: refridgeration, deli fit out etc. on the understanding that my bank was going to finance it. I was given the go ahead from my Manager three months ago. He was moved in January and his replacement says he can no longer sanction it. Yes, I know I should have waited until the cash was in my account but, hindsight eh?

sorry now to ask historic questions, but

• did you get any confirmation in writing from bank for the finance?
• did you prepare a detailed business plan to provide to bank?
• did your accountant assist you with preparing same and/or attend meeting with you in the bank?
• You obviously were going to have to make repayments on said loan of €80k plus interest...over what period...10 years?.....this means you obviously had the means of making monthly repayments......then why not approach another bank.......if you business is profitable and you can produce current financial accounts (not bank accountants) to show same and the cashflows are there to repay the loan then why not try it?????

Southsider1

Yeah. I did that today with another bank. They seemed interested but has to go through a lending dept in Dublin. Either way it will take a couple of weeks and I need cash NOW! I asked about a temp overdraft or bridging and again "Shouldn't be a problem but..... it'll take a week or two to set up!" AArgh!