The credit crunch lands at my door.

Alan_M_2

Generali wrote: »

TBH that's all I can think of.

There's Alan M's All You can Eat Granite Sale or something like that but I'm sure you've thought of the obvious move: cutting prices.

Times are hard and if it's any help, I'm suffering with you. Sometimes bad things happen to good people.

Actually did the cut prices thing last week and we've had a noticeable increase in enquiries and sales so far. So the business is out there for the right price.

Anyone fancy investing in a granite business?:rolleyes:

Really2

Alan_M wrote: »

In my mind we either find an investor or someone willing to lend cash short term for a good return.

We could factor in a 10% fixed return on funds in 6 months, the lender would then be welcome to hold title on goods until paid and use out warehousing facility in which to store "His" goods....

Now is probably the last time I'd want to consider selling.

Any other (constructive) suggestions gratefully received.

We are not the only business in this industry facing this issue, there are some products unavailable due to financing issues nationwide.

Good luck with finding the right investor for you and the company.
I hope everything works out for you. (I am sure it will)
Positive things happen to Positive people.

sdooley

Could you get buy-in from your staff? Doesn't say how big you are but £2K each among 30 staff in exchange for a 25% stake in the firm versus a 20%+ stake going to Dragon's Den type investors - I know which I'd choose!

Alternatively, for your larger customer orders, you already take deposits but you might find you could invoice finance the balance (if they are your larger customers they are presumably the best risks).

vivatifosi

Hi Alan,

Firstly good luck with your situation. I don't know the granite industry particularly well, but do know some building products industries.

You've probably done this already, but if not, it could be worth analysing your turnover/profitability by line and only importing those lines that are most popular/profitable. Where I used to work we did this with some veneers and sold some to the trade that we didn't use and got some money in quickly, while focusing on those that were most profitable.

Are there any countries closer than India that you can get granite in from that may be more expensive but you can source more quickly/in smaller quantities?

Are there any suppliers on the continent that you can partner with and share stocks without losing your UK competitiveness?

Again if you haven't done so already, have you put your products on RIBA product selector? That may also open you up to more buyers.

I can't offer any financial advice, but do know from running my own business when I've tried to get any kind of finance in the last year I have felt like I was being made to ride a unicycle (bl**dy difficult) while juggling chainsaws (bl**dy dangerous).

Good luck!

silvercar

Are there local business groups, chambers of commerce and the like that could help?

Have you looked on zopla? Not sure if the amount is too large.

As you have personally guaranteed the loans, would it be that much of a greater risk if you funded this yourself via credit card cash, unsecured loans, selling the family car etc?

I'm sending you a PM with the name of a contact at a major bank that may be able to help.

silvercar

Just noticed your in granite. Guess that is really hit by the credit crunch, not only are people not replacing their kitchens but when they do, they get near the end of the ordering and realise that granite is an expensive option.

Really makes a kitchen though, I've had my old worktops replaced with granite this week:)

Could you only stock black galaxy star, to keep your stock levels down?

kennyboy66_2

Alan,

Nice worktops.

1) Have you tried small firms guarantee scheme ?

2) Once the bank have withdrawn your funding, do you have personal guarantees on anything else ? If not a personal loan does not really increase your risk.

3) Are you on the right VAT scheme ? Could it be worth being on a cash accounting scheme ?

4) Are there any other importers that you know. Could you share the cost of economic buying.

5) Can you make use of the BPSS scheme to delay VAT or Corporation tax.

Good luck

kennyboy66_2

Alan_M wrote: »

Despite being a Ltd company, all lending is secured on personal assets, otherwise that would have been option number one.

Its an !!!! of a trick, but many sizeable businesses run themselves down, making sure that all loans / overdrafts are paid off before going into administration - clearly it lessens / negates the point of going bust if you have outstanding guarantees.

It depends on who your creditors are then, if it is mainly the taxman, then reluctantly, it is one of the options.

neverdespairgirl

Alan_M wrote: »

We could factor in a 10% fixed return on funds in 6 months, the lender would then be welcome to hold title on goods until paid and use out warehousing facility in which to store "His" goods....

What would you do in 6 months' time? Could you afford to borrow at 20% APR?

Alan_M_2

kennyboy66 wrote: »

Alan,

Nice worktops.

1) Have you tried small firms guarantee scheme ?

2) Once the bank have withdrawn your funding, do you have personal guarantees on anything else ? If not a personal loan does not really increase your risk.

3) Are you on the right VAT scheme ? Could it be worth being on a cash accounting scheme ?

4) Are there any other importers that you know. Could you share the cost of economic buying.

5) Can you make use of the BPSS scheme to delay VAT or Corporation tax.

Good luck

1) SFLGS, this is the system that's been replaced by the current government guarantee scheme. We qualify, it takes on average 6 months to get the drawdown.

2) They hold a debenture over the business but no more personal guarantees.

3) We don't have a problem with VAT, we're in the correct scheme and up to date.

4) Simply not viable, more for logistics than anything else.

5) I'll look into this, could be helpful.