The credit crunch lands at my door.

Wookster

It maybe a silly question but have you tried to negotiate and extension of some (or any) sort with the bank?

Alan_M_2

Wookster wrote: »

It maybe a silly question but have you tried to negotiate and extension of some (or any) sort with the bank?

Yup.....Computer says no.....

silvercar

Alan_M wrote: »

Unfortunately not, we don't really use them, so applying now for a fistfull isn't likely to work....

With a clean credit record and being a home owner, you'd be surprised how quickly people will give you money.

Has anyone mentioned zopla?

I know this could impact on your business but the way round it could be to quote 6 week delivery dates and then notify your customers that your supplier has had problems so it will be another few weeks. Not ideal I know.

Wookster

Alan_M wrote: »

Yup.....Computer says no.....

No chance of a meeting with the bank manager?

tomstickland

Can you not raise the money from customers paying in advance? Bit of a tricky situation though, they might be thinking that you're going to go under and not like the idea of paying in advance.

Nomad25

I know nothing about these people, other than my bank gives them as a useful link for cash flow management:

http://www.lombard.co.uk/assets/

tirano

Alan_M wrote: »

The granite we buy in US Dollars, which has also hit, but our sale prices are based on what the purchase cost of each unit was, not what the prevailing rate is on the day in question, effectively we build rate fluctuations into our prices.

The US$ was 2 to the £ last summer, now its $1.40, a massive drop, importers are being squeezed, wholesale importers that have very little margin are being squashed, sounds like you are in the latter category.

You have to base your current selling prices on the exchange rate that you think will be in place when you make your next order, I am basing my pricing on $1.15, and as I sell direct rather than wholesale I have more margin to play with.

HelpWhereIcan

Hi Alan, sorry to hear of your difficulties.

Depending on your current (combined) levels of equity, it may be possible to get a bridge to remove the bank's charge and give you the money you need to repay them.

Bridging lenders tend to allow 'any legal purpose' so should be ok with the reason you need the funds unlike most residential and secured loan lenders who are not happy with lending for business purposes.

Would this allow you to fund the new stock from the sale of the current stock?

If not, it may be possible to arrange some if not all of the extra you need as well but equity obviously plays an issue.

If yes, funds have been known to be available in days so it could help.

I would warn that you need to be very sure of your repayment timescales to avoid committing to repaying it too soon.

Should not be as expensive as the stock finance you have been quoted.

Hope this helps and Good Luck

Alan_M_2

Wookster wrote: »

No chance of a meeting with the bank manager?

Bank manager said computer said no......should have been clearer.

Our bank are not saying they won't lend, they are simply saying they will not lend in the timescale we require.

I am in the process of questioning them on the EFG (previously SFLGS) as their timescales seem completely out of whack with what others are quoting me.

Alan_M_2

tirano wrote: »

The US$ was 2 to the £ last summer, now its $1.40, a massive drop, importers are being squeezed, wholesale importers that have very little margin are being squashed, sounds like you are in the latter category.

You have to base your current selling prices on the exchange rate that you think will be in place when you make your next order, I am basing my pricing on $1.15, and as I sell direct rather than wholesale I have more margin to play with.

My margin is fine (and has not been eroded), as I explained, like every other supplier in the UK the exchange rate is priced into the final sale price.