The credit crunch lands at my door.

Alan_M_2

sdooley wrote: »

Business angels/venture capitalists etc aren't interested in saving businesses but will invest if you can sell them a growth story. Any deal will leave you with little or nothing if you don't deliver that growth, though.

Agreed, but realistically the best chance we have is investment.

Also being a realist, I'd prefer to own a small amount of a profitable company that's growing rather than all of a company that isn't.

Nomad25

That's a wise approach.

Last thought. Are any same type product/business companies that you could amalgamate with [like kitchen unit manufacturers or suppliers] who are in a better financial position?

Email Mandelson, he's supposed to be the gov's business manager.

scousethife

Can you not buy just 1 container?

silvercar

Do you have an accountant? What advice does he offer?

kennyboy66_2

Alan_M wrote: »

Ideally that would be the answer, the problem is the lead time.

When I place an order, the stone is quarried, transported to the relevant factory, then processed to our requirements. That takes around 4-6 weeks, it's then loaded and shipped (from India) that takes 3 weeks of sailing then a week in port to clear and deliver.

So on average we see an order three months after it's placed, my orders now are for stock required in April/May.

What we can't do is fund the advanced stock requirements and pay down our lending facility at the same time, we can do one or the other.

At what point in this cycle do you pay for the goods ?

silvercar

Do people really order 3 months in advance or do you forecast stock levels?

Another thought. Do you own the warehouse? Is there a possibility of sale and lease back?

We're not a big company (family, there's three of us and I run it day to day), this particular industry is not staff intensive, we do not produce, we supply only.

With the whole family involved, can no-one offer property as security for the loan? How new is this business? Would it be possible for you all to draw down less from the business in order to leave some money in it to pay for stock?

sabretoothtigger

Try another bank that didnt invest so much in mortgages arent merchant banks supposed to cover these things

mewbie_2

What about Venture Capital - does that still exist? surely some profit to be made. What about Zopa or similar? What about your suppliers working with you to find a way?

Alan_M_2

kennyboy66 wrote: »

At what point in this cycle do you pay for the goods ?

50% on order balance on leaving port (india) - we pay in full in advance, that's how the business operates worldwide.

Alan_M_2

scousethife wrote: »

Can you not buy just 1 container?

We sell in the region of a container a month and increasing, with a three month lead time, we need to be 3 units ahead in various stages to avoid voids periods of no stock.