Advice on what to do going forward
Discussion
So I have created a new account here to keep things as private as possible as generally I dont like sharing my personal woes online but sometimes you have to get an outsiders point of view.
I am stuck in a difficult position at the moment, having been the owner of an e-commerce company for 12 years (online retail/sports based) the last few years have been tough. I sold some investment properties I had (lowish value ones mortgage paid off) to fund some property flips which did ok but the one I am currently doing is going to bite me in the arse, If lucky I might break even or worst case lost £30k which at the moment is a lot to me.
The ecom company was doing pretty bad the last few years which is why I switched to doing some property ventures on the side as its not new to me and supported us while the business played out as it would.
Fast forward to 2025, the ecom business has about £45k in unsecured debt, mixture between credit card (this has a personal guarantee but not a huge amount on it so I can pay this off with stock sales), BBL and Shopify finance. There is about £20k in stock and cash roughly. However in the last few months I was approached by some overseas suppliers to re-sell overstock and OEM products, these are the same as what we sell now but purchased much lower then normal trade price and also a niche market as there are no other competitors for this type of OEM stock which we can sell at a knock down rate. Its been going well and I would love to expand on this market.
The issue we have is majority of the sales and profit is just being eaten up by loan repayments, general operation costs etc. Then to buy more stock at an excellent price were having to stick it on the credit card as we dont want to pass up on these offers and the suppliers move to new contacts.
Honestly I cant see the e-com company surviving unless I can clear the debt and start again. Yes liquidation is an option but I also dont want to lose the company as we have a trading history and when it comes to getting accounts, finance, contacts etc we are established.
Also, if I was to liquidate this company and start one similar (not the same as we would focus on export and B2B) would that be frowned upon?
We have used up most of the BBL options now and the loan will kick in again soon which on top of the credit card costs, shopify finance taking a cut etc means were working on an even smaller margin.
Its frustrating as we could really do well with these new contacts and products but are being held back by cashflow and debt issues.
Any advice would be much appreciated.
I am stuck in a difficult position at the moment, having been the owner of an e-commerce company for 12 years (online retail/sports based) the last few years have been tough. I sold some investment properties I had (lowish value ones mortgage paid off) to fund some property flips which did ok but the one I am currently doing is going to bite me in the arse, If lucky I might break even or worst case lost £30k which at the moment is a lot to me.
The ecom company was doing pretty bad the last few years which is why I switched to doing some property ventures on the side as its not new to me and supported us while the business played out as it would.
Fast forward to 2025, the ecom business has about £45k in unsecured debt, mixture between credit card (this has a personal guarantee but not a huge amount on it so I can pay this off with stock sales), BBL and Shopify finance. There is about £20k in stock and cash roughly. However in the last few months I was approached by some overseas suppliers to re-sell overstock and OEM products, these are the same as what we sell now but purchased much lower then normal trade price and also a niche market as there are no other competitors for this type of OEM stock which we can sell at a knock down rate. Its been going well and I would love to expand on this market.
The issue we have is majority of the sales and profit is just being eaten up by loan repayments, general operation costs etc. Then to buy more stock at an excellent price were having to stick it on the credit card as we dont want to pass up on these offers and the suppliers move to new contacts.
Honestly I cant see the e-com company surviving unless I can clear the debt and start again. Yes liquidation is an option but I also dont want to lose the company as we have a trading history and when it comes to getting accounts, finance, contacts etc we are established.
Also, if I was to liquidate this company and start one similar (not the same as we would focus on export and B2B) would that be frowned upon?
We have used up most of the BBL options now and the loan will kick in again soon which on top of the credit card costs, shopify finance taking a cut etc means were working on an even smaller margin.
Its frustrating as we could really do well with these new contacts and products but are being held back by cashflow and debt issues.
Any advice would be much appreciated.
NW23 said:
credit card (this has a personal guarantee but not a huge amount on it so I can pay this off with stock sales).
If the company is insolvent, for instance "unable to pay its debts as they fall due", you certainly can't cash yourself out and just walk away from the other creditors. Panamax said:
If the company is insolvent, for instance "unable to pay its debts as they fall due", you certainly can't cash yourself out and just walk away from the other creditors.
Thats not my plan, I am just stating there is about £15k in stock and cash which can be used to clear as much debt as possible.The credit card would be paid off as there is a low amount on it, we could pay back 50-70% of Shopify and the rest towards the BBL but that would still leave about £30k balance on it.
Bit hard to advise without more numbers.
What's the monthly turnover of the ecom business?
What are the monthly operating costs of the ecom business, broken down by type?
What is the monthly debt servicing cost?
Do you have any staff? How much do they cost? What do they do?
Are you drawing any income from the ecom business? How much? Is it your main income?
General advice would be to get the debts paid down as quickly as possible, kill the product lines that have been struggling for multiple years and slowly grow the promising new niche by investing profits into expansion. And, easier said than done, stop distracting yourself with stressful, risky property flips.
Moving forward, try and take as little debt as possible and grow a sustainable business more slowly.
What's the monthly turnover of the ecom business?
What are the monthly operating costs of the ecom business, broken down by type?
What is the monthly debt servicing cost?
Do you have any staff? How much do they cost? What do they do?
Are you drawing any income from the ecom business? How much? Is it your main income?
General advice would be to get the debts paid down as quickly as possible, kill the product lines that have been struggling for multiple years and slowly grow the promising new niche by investing profits into expansion. And, easier said than done, stop distracting yourself with stressful, risky property flips.
Moving forward, try and take as little debt as possible and grow a sustainable business more slowly.
Hi NW23,
I’ve just made an account to reply to this because your post really struck a chord. I’ve been in a similar spot before and know how overwhelming it can get when you’re juggling debt, tight margins, and the constant pressure of keeping things going. First of all, respect for being honest about where you’re at and for fighting this hard. It sounds like you’ve put in serious effort and are trying to find a way forward rather than just giving up.
From what you’ve said, the OEM angle sounds genuinely promising. It’s a niche where you seem to have an edge, and if the margins are solid and the competition is low, it could be the future of the business. That said, the debt you’re carrying right now and the way it’s squeezing your cashflow is clearly holding everything back. Its really tough when repayments, card fees, and platform cuts are eating up the gains before you can reinvest or even breathe.
I know you mentioned liquidation and the idea of starting fresh, and I get it — sometimes it can feel like the only way to escape the drag of legacy issues. But that route needs to be handled carefully, especially with any personal guarantees in place. It’s not necessarily frowned upon if it’s done properly and for the right reasons, but you’d want to speak to someone who really knows the ins and outs — ideally an insolvency practitioner or a good commercial accountant. They can help you work out if a reset is even worth it, or if there’s a cleaner way to pivot without burning bridges.
Honestly, and Isay this from experience, it might be worth pulling right back from anything that isn’t profitable in the short term — even if it means pausing growth or letting go of older stock lines. If the new side of the business is working and genuinely profitable, you might be able to slowly rebuild from there, but only if it’s not being dragged under by repayments and legacy commitments. That might mean running leaner, selling only what gives you a clear margin, and negotiating harder with suppliers or finance platforms to buy a bit of breathing space.
It’s easy for people to say “just pay the debt down” or “scale slowly,” but I know how hard that is when you’re trying to juggle everything at once and stay hopeful. Still, if the core of the business is solid — and it sounds like this new direction might be — there’s still a chance to reshape things without starting from scratch.
If youre open to sharing a few more details on revenue and expenses, I’d be happy to chip in again. But either way, you’re not alone in this. Keep going, but protect your future self at the same time that balance is everything.
Wishing you the best with it.
NW23 said:
The ecom company was doing pretty bad the last few years. Fast forward to 2025, the ecom business has about £45k in unsecured debt
There is about £20k in stock and cash.
Are there other assets or is the company already insolvent?There is about £20k in stock and cash.
"Wrongful trading occurs when a company's directors continue to trade after they knew, or should have known, that the company was insolvent and had no reasonable prospect of avoiding liquidation or administration. Directors can be held personally liable for losses incurred during this period, particularly if they failed to take all reasonable steps to minimize potential losses to creditors."
IQSHIFT said:
Hi NW23,
I ve just made an account to reply to this because your post really struck a chord. I ve been in a similar spot before and know how overwhelming it can get when you re juggling debt, tight margins, and the constant pressure of keeping things going. First of all, respect for being honest about where you re at and for fighting this hard. It sounds like you ve put in serious effort and are trying to find a way forward rather than just giving up.
From what you ve said, the OEM angle sounds genuinely promising. It s a niche where you seem to have an edge, and if the margins are solid and the competition is low, it could be the future of the business. That said, the debt you re carrying right now and the way it s squeezing your cashflow is clearly holding everything back. Its really tough when repayments, card fees, and platform cuts are eating up the gains before you can reinvest or even breathe.
I know you mentioned liquidation and the idea of starting fresh, and I get it sometimes it can feel like the only way to escape the drag of legacy issues. But that route needs to be handled carefully, especially with any personal guarantees in place. It s not necessarily frowned upon if it s done properly and for the right reasons, but you d want to speak to someone who really knows the ins and outs ideally an insolvency practitioner or a good commercial accountant. They can help you work out if a reset is even worth it, or if there s a cleaner way to pivot without burning bridges.
Honestly, and Isay this from experience, it might be worth pulling right back from anything that isn t profitable in the short term even if it means pausing growth or letting go of older stock lines. If the new side of the business is working and genuinely profitable, you might be able to slowly rebuild from there, but only if it s not being dragged under by repayments and legacy commitments. That might mean running leaner, selling only what gives you a clear margin, and negotiating harder with suppliers or finance platforms to buy a bit of breathing space.
It s easy for people to say just pay the debt down or scale slowly, but I know how hard that is when you re trying to juggle everything at once and stay hopeful. Still, if the core of the business is solid and it sounds like this new direction might be there s still a chance to reshape things without starting from scratch.
If youre open to sharing a few more details on revenue and expenses, I d be happy to chip in again. But either way, you re not alone in this. Keep going, but protect your future self at the same time that balance is everything.
Wishing you the best with it.
Thank you, genuinely really appreciate that reply.I ve just made an account to reply to this because your post really struck a chord. I ve been in a similar spot before and know how overwhelming it can get when you re juggling debt, tight margins, and the constant pressure of keeping things going. First of all, respect for being honest about where you re at and for fighting this hard. It sounds like you ve put in serious effort and are trying to find a way forward rather than just giving up.
From what you ve said, the OEM angle sounds genuinely promising. It s a niche where you seem to have an edge, and if the margins are solid and the competition is low, it could be the future of the business. That said, the debt you re carrying right now and the way it s squeezing your cashflow is clearly holding everything back. Its really tough when repayments, card fees, and platform cuts are eating up the gains before you can reinvest or even breathe.
I know you mentioned liquidation and the idea of starting fresh, and I get it sometimes it can feel like the only way to escape the drag of legacy issues. But that route needs to be handled carefully, especially with any personal guarantees in place. It s not necessarily frowned upon if it s done properly and for the right reasons, but you d want to speak to someone who really knows the ins and outs ideally an insolvency practitioner or a good commercial accountant. They can help you work out if a reset is even worth it, or if there s a cleaner way to pivot without burning bridges.
Honestly, and Isay this from experience, it might be worth pulling right back from anything that isn t profitable in the short term even if it means pausing growth or letting go of older stock lines. If the new side of the business is working and genuinely profitable, you might be able to slowly rebuild from there, but only if it s not being dragged under by repayments and legacy commitments. That might mean running leaner, selling only what gives you a clear margin, and negotiating harder with suppliers or finance platforms to buy a bit of breathing space.
It s easy for people to say just pay the debt down or scale slowly, but I know how hard that is when you re trying to juggle everything at once and stay hopeful. Still, if the core of the business is solid and it sounds like this new direction might be there s still a chance to reshape things without starting from scratch.
If youre open to sharing a few more details on revenue and expenses, I d be happy to chip in again. But either way, you re not alone in this. Keep going, but protect your future self at the same time that balance is everything.
Wishing you the best with it.
I will send over some figures tomorrow once I have time to sit down and look at how sales have been recently.
The issue as mentioned is even with the new OEM stock we are running a fine line. We are selling this stock at a low-ish price so we can get consistent orders but we have eBay taking around 12% cut, Shopify at 8.5% (due to the loan) plus the usual VAT and tax, PayPal etc. We then have the bounce back loan which will kick in at £700 pm and the current CC monthlies at around £550.
We have changed courier companies to try and save costs, and have been through the accounts and stopped any unnecessary spending and trade subscriptions etc. There isn't more we can do to cut costs in all honesty, we used to use a fulfilment company when I moved a lot of my time in to the property deals but stopped that earlier this year and I am doing it all myself at present which helps.
Having had a think today, the only possible option would be (providing my current property deal goes to plan) for me to personally pay off the credit card and a chunk of the Shopify loan, then continue with the 8.5% fees to get it paid off before the BBL kicks in.
The ground work of the business is pretty solid and this new OEM stock is working very well, I wish it was 5 years ago as I would have sunk a good chunk of money in to marketing this and got it off the ground in a big style. If I can keep my head above water and push sales more this year then I will reinvest what I can in to marketing as we currently dont do anything, I am seeing competitors selling similar products for substantially higher than us but we just aren't getting the traffic.
I am barely even taking a salary from the business at present which puts more pressure on my financial status, I am trying to leave as much as I can in the account to cover the running costs and paying off the card etc.
If we can get down to just the BBL at £700 then there is a possibility I can try and push through but being restricted with what I can buy due to cashflow doesn't help. I need to be placing orders for £15k-£20k to be making it really worth while but I am plodding along with smaller orders at £3k-5k every now and then which is frustrating when the products are in front of you at a bargain price.
Thanks again for all the replies, I will keep you all updated.
NW23 said:
Thank you, genuinely really appreciate that reply.
I will send over some figures tomorrow once I have time to sit down and look at how sales have been recently.
The issue as mentioned is even with the new OEM stock we are running a fine line. We are selling this stock at a low-ish price so we can get consistent orders but we have eBay taking around 12% cut, Shopify at 8.5% (due to the loan) plus the usual VAT and tax, PayPal etc. We then have the bounce back loan which will kick in at £700 pm and the current CC monthlies at around £550.
We have changed courier companies to try and save costs, and have been through the accounts and stopped any unnecessary spending and trade subscriptions etc. There isn't more we can do to cut costs in all honesty, we used to use a fulfilment company when I moved a lot of my time in to the property deals but stopped that earlier this year and I am doing it all myself at present which helps.
Having had a think today, the only possible option would be (providing my current property deal goes to plan) for me to personally pay off the credit card and a chunk of the Shopify loan, then continue with the 8.5% fees to get it paid off before the BBL kicks in.
The ground work of the business is pretty solid and this new OEM stock is working very well, I wish it was 5 years ago as I would have sunk a good chunk of money in to marketing this and got it off the ground in a big style. If I can keep my head above water and push sales more this year then I will reinvest what I can in to marketing as we currently dont do anything, I am seeing competitors selling similar products for substantially higher than us but we just aren't getting the traffic.
I am barely even taking a salary from the business at present which puts more pressure on my financial status, I am trying to leave as much as I can in the account to cover the running costs and paying off the card etc.
If we can get down to just the BBL at £700 then there is a possibility I can try and push through but being restricted with what I can buy due to cashflow doesn't help. I need to be placing orders for £15k-£20k to be making it really worth while but I am plodding along with smaller orders at £3k-5k every now and then which is frustrating when the products are in front of you at a bargain price.
Thanks again for all the replies, I will keep you all updated.
I cannot think of a scenario where it makes sense for you to pay back any of the shopify financing early. It is not a loan and it has no additional cost for paying slowly. I suggest instead that you look in to how you can legitimately pay it back more slowly.I will send over some figures tomorrow once I have time to sit down and look at how sales have been recently.
The issue as mentioned is even with the new OEM stock we are running a fine line. We are selling this stock at a low-ish price so we can get consistent orders but we have eBay taking around 12% cut, Shopify at 8.5% (due to the loan) plus the usual VAT and tax, PayPal etc. We then have the bounce back loan which will kick in at £700 pm and the current CC monthlies at around £550.
We have changed courier companies to try and save costs, and have been through the accounts and stopped any unnecessary spending and trade subscriptions etc. There isn't more we can do to cut costs in all honesty, we used to use a fulfilment company when I moved a lot of my time in to the property deals but stopped that earlier this year and I am doing it all myself at present which helps.
Having had a think today, the only possible option would be (providing my current property deal goes to plan) for me to personally pay off the credit card and a chunk of the Shopify loan, then continue with the 8.5% fees to get it paid off before the BBL kicks in.
The ground work of the business is pretty solid and this new OEM stock is working very well, I wish it was 5 years ago as I would have sunk a good chunk of money in to marketing this and got it off the ground in a big style. If I can keep my head above water and push sales more this year then I will reinvest what I can in to marketing as we currently dont do anything, I am seeing competitors selling similar products for substantially higher than us but we just aren't getting the traffic.
I am barely even taking a salary from the business at present which puts more pressure on my financial status, I am trying to leave as much as I can in the account to cover the running costs and paying off the card etc.
If we can get down to just the BBL at £700 then there is a possibility I can try and push through but being restricted with what I can buy due to cashflow doesn't help. I need to be placing orders for £15k-£20k to be making it really worth while but I am plodding along with smaller orders at £3k-5k every now and then which is frustrating when the products are in front of you at a bargain price.
Thanks again for all the replies, I will keep you all updated.
Edit: actually the only scenario I can think of is if you wanted to pay off a small remaining balance so that you can access a new shopify advance. If you’re doing things right then the ~15% fee on the shopify advance should not eat too much of your margin, and their advances are quick to access (two or three days typically) so you can take one as soon as you get offered more stock.
Edited by Disco You on Sunday 1st June 20:52
I don't know your sector but to me, it seems a common issue that many businesses face - you have a solid concept and the opportunity for growth which cannot be realised because of the debt burden and operating costs.
Business Basics 101 suggests reducing operating costs wherever you can, raising prices and boosting sales. Easier said than done, I know, but that's sort of it really.
Can you not lump all debt into one single, long-term loan? - thereby reducing the monthly repayments to give yourself some operational headroom?
The other option is to inject cash into the business. Have you thought about bringing in an investor / partner? Yes, you'll be relinquishing some of the business but you may also find that this is what's needed to take the business where it needs and could go. A smaller percentage of something is better than 100% of nothing!
Business Basics 101 suggests reducing operating costs wherever you can, raising prices and boosting sales. Easier said than done, I know, but that's sort of it really.
Can you not lump all debt into one single, long-term loan? - thereby reducing the monthly repayments to give yourself some operational headroom?
The other option is to inject cash into the business. Have you thought about bringing in an investor / partner? Yes, you'll be relinquishing some of the business but you may also find that this is what's needed to take the business where it needs and could go. A smaller percentage of something is better than 100% of nothing!
NW23 said:
IQSHIFT said:
Hi NW23,
I ve just made an account to reply to this because your post really struck a chord. I ve been in a similar spot before and know how overwhelming it can get when you re juggling debt, tight margins, and the constant pressure of keeping things going. First of all, respect for being honest about where you re at and for fighting this hard. It sounds like you ve put in serious effort and are trying to find a way forward rather than just giving up.
From what you ve said, the OEM angle sounds genuinely promising. It s a niche where you seem to have an edge, and if the margins are solid and the competition is low, it could be the future of the business. That said, the debt you re carrying right now and the way it s squeezing your cashflow is clearly holding everything back. Its really tough when repayments, card fees, and platform cuts are eating up the gains before you can reinvest or even breathe.
I know you mentioned liquidation and the idea of starting fresh, and I get it sometimes it can feel like the only way to escape the drag of legacy issues. But that route needs to be handled carefully, especially with any personal guarantees in place. It s not necessarily frowned upon if it s done properly and for the right reasons, but you d want to speak to someone who really knows the ins and outs ideally an insolvency practitioner or a good commercial accountant. They can help you work out if a reset is even worth it, or if there s a cleaner way to pivot without burning bridges.
Honestly, and Isay this from experience, it might be worth pulling right back from anything that isn t profitable in the short term even if it means pausing growth or letting go of older stock lines. If the new side of the business is working and genuinely profitable, you might be able to slowly rebuild from there, but only if it s not being dragged under by repayments and legacy commitments. That might mean running leaner, selling only what gives you a clear margin, and negotiating harder with suppliers or finance platforms to buy a bit of breathing space.
It s easy for people to say just pay the debt down or scale slowly, but I know how hard that is when you re trying to juggle everything at once and stay hopeful. Still, if the core of the business is solid and it sounds like this new direction might be there s still a chance to reshape things without starting from scratch.
If youre open to sharing a few more details on revenue and expenses, I d be happy to chip in again. But either way, you re not alone in this. Keep going, but protect your future self at the same time that balance is everything.
Wishing you the best with it.
Thank you, genuinely really appreciate that reply.I ve just made an account to reply to this because your post really struck a chord. I ve been in a similar spot before and know how overwhelming it can get when you re juggling debt, tight margins, and the constant pressure of keeping things going. First of all, respect for being honest about where you re at and for fighting this hard. It sounds like you ve put in serious effort and are trying to find a way forward rather than just giving up.
From what you ve said, the OEM angle sounds genuinely promising. It s a niche where you seem to have an edge, and if the margins are solid and the competition is low, it could be the future of the business. That said, the debt you re carrying right now and the way it s squeezing your cashflow is clearly holding everything back. Its really tough when repayments, card fees, and platform cuts are eating up the gains before you can reinvest or even breathe.
I know you mentioned liquidation and the idea of starting fresh, and I get it sometimes it can feel like the only way to escape the drag of legacy issues. But that route needs to be handled carefully, especially with any personal guarantees in place. It s not necessarily frowned upon if it s done properly and for the right reasons, but you d want to speak to someone who really knows the ins and outs ideally an insolvency practitioner or a good commercial accountant. They can help you work out if a reset is even worth it, or if there s a cleaner way to pivot without burning bridges.
Honestly, and Isay this from experience, it might be worth pulling right back from anything that isn t profitable in the short term even if it means pausing growth or letting go of older stock lines. If the new side of the business is working and genuinely profitable, you might be able to slowly rebuild from there, but only if it s not being dragged under by repayments and legacy commitments. That might mean running leaner, selling only what gives you a clear margin, and negotiating harder with suppliers or finance platforms to buy a bit of breathing space.
It s easy for people to say just pay the debt down or scale slowly, but I know how hard that is when you re trying to juggle everything at once and stay hopeful. Still, if the core of the business is solid and it sounds like this new direction might be there s still a chance to reshape things without starting from scratch.
If youre open to sharing a few more details on revenue and expenses, I d be happy to chip in again. But either way, you re not alone in this. Keep going, but protect your future self at the same time that balance is everything.
Wishing you the best with it.
Regarding your business, from the loose figures you've posted, you don't actually have a business. You are insolvent and your only way of keeping the dead business on life support is to keep borrowing even more debt to pay off the interest on the existing debt. I believe the saying is "robbing Peter to pay Paul".
Tisy said:
Regarding your business, from the loose figures you've posted, you don't actually have a business. You are insolvent and your only way of keeping the dead business on life support is to keep borrowing even more debt to pay off the interest on the existing debt.
That's my feeling as well, from the information given.Panamax said:
Tisy said:
Regarding your business, from the loose figures you've posted, you don't actually have a business. You are insolvent and your only way of keeping the dead business on life support is to keep borrowing even more debt to pay off the interest on the existing debt.
That's my feeling as well, from the information given.NW23 said:
The issue we have is majority of the sales and profit is just being eaten up by loan repayments, general operation costs etc. Then to buy more stock at an excellent price were having to stick it on the credit card as we dont want to pass up on these offers and the suppliers move to new contacts.
To me that suggests that current debt obligations are being met but growth is hindered due to the lack of cash. That doesn't necessarily indicate insolvency but clearly that's looming. StevieBee said:
Panamax said:
Tisy said:
Regarding your business, from the loose figures you've posted, you don't actually have a business. You are insolvent and your only way of keeping the dead business on life support is to keep borrowing even more debt to pay off the interest on the existing debt.
That's my feeling as well, from the information given.NW23 said:
The issue we have is majority of the sales and profit is just being eaten up by loan repayments, general operation costs etc. Then to buy more stock at an excellent price were having to stick it on the credit card as we dont want to pass up on these offers and the suppliers move to new contacts.
To me that suggests that current debt obligations are being met but growth is hindered due to the lack of cash. That doesn't necessarily indicate insolvency but clearly that's looming.Hi everyone.
Apologies for the late reply.
I am not going to dispute that the company is just about treading water at the moment, we are using debt to order more which with the interest & payments is making the margins tight but the overall balance if we continue is slowly (yes, very slowly) increasing, its just a case of churning out what we can, paying down the debt and then trying to increase the next order.
Sales on eBay have been up this week, we have took about £4k in the last 7-8 days.
We have had another good OEM offer today, rough figures:
Batch deal at £13k
Re-sale value even with a hard discount would be around £22k NET (based on the lowest we would sell this stock for) so that deal could net us about £8/9k pre tax profit.
Second deal:
Unit price landed in the UK, approx £185
Re-sale at lowest price would be £340 NET.
MOQ 50
Should see pre tax prof of £7k comfortably
An investor would be great, not even just for a cash injection (yes it would be needed to give the company breathing space) but just the expertise of building on this product line.
We are fortunate in that we are B2C so I dont have to worry about any unpaid invoices, the company only has the debt above. We take payment upfront before shipping.
I am working on it non stop now, networking with some more suppliers which I think are a good fit and cutting the costs down.
If the property deal in question comes off okay I am thinking of setting the CC bill, I can pay a good chunk with cash/stock sales over the coming weeks and that will free up around £500 per month.
We can then possibly live with the Shopify capital for now, ideally pay it down as quick as we can to lose the 8.5% fee.
The BBL will kick in around October so I need the CC paying off by then and at least sales and the balance sheet to be increasing.
Regarding a loan to consolidate it all, that wont really be an option, the BBL was such a low rate nothing else could compete. We will have to just suck it up and chip away at that like we were.
I am in the mind set where I want to keep pushing this and bring it back but its going to be a long uphill struggle.
As an idea on how things were 5-10 years ago, we were doing around £500-600k per annum, no loans, credit card or debt (100% organic growth, no marketing etc!). I literally built the business up from a few thousand I had in savings in 2013. We took the BBL to grow through covid which worked but then the dip happened and the demand died but we had bills to pay, that stock was sold cheaper than planned and took 3 x longer. The CC is only minor, i can live with that and the Shopify loan was to clear the bulk of the CC as the rates are shocking.
If I put my head down, invest a bit more in to it and try to increase stock, sales whil paying off debt there is a slight chance we can bring this back.
Apologies for the late reply.
I am not going to dispute that the company is just about treading water at the moment, we are using debt to order more which with the interest & payments is making the margins tight but the overall balance if we continue is slowly (yes, very slowly) increasing, its just a case of churning out what we can, paying down the debt and then trying to increase the next order.
Sales on eBay have been up this week, we have took about £4k in the last 7-8 days.
We have had another good OEM offer today, rough figures:
Batch deal at £13k
Re-sale value even with a hard discount would be around £22k NET (based on the lowest we would sell this stock for) so that deal could net us about £8/9k pre tax profit.
Second deal:
Unit price landed in the UK, approx £185
Re-sale at lowest price would be £340 NET.
MOQ 50
Should see pre tax prof of £7k comfortably
An investor would be great, not even just for a cash injection (yes it would be needed to give the company breathing space) but just the expertise of building on this product line.
We are fortunate in that we are B2C so I dont have to worry about any unpaid invoices, the company only has the debt above. We take payment upfront before shipping.
I am working on it non stop now, networking with some more suppliers which I think are a good fit and cutting the costs down.
If the property deal in question comes off okay I am thinking of setting the CC bill, I can pay a good chunk with cash/stock sales over the coming weeks and that will free up around £500 per month.
We can then possibly live with the Shopify capital for now, ideally pay it down as quick as we can to lose the 8.5% fee.
The BBL will kick in around October so I need the CC paying off by then and at least sales and the balance sheet to be increasing.
Regarding a loan to consolidate it all, that wont really be an option, the BBL was such a low rate nothing else could compete. We will have to just suck it up and chip away at that like we were.
I am in the mind set where I want to keep pushing this and bring it back but its going to be a long uphill struggle.
As an idea on how things were 5-10 years ago, we were doing around £500-600k per annum, no loans, credit card or debt (100% organic growth, no marketing etc!). I literally built the business up from a few thousand I had in savings in 2013. We took the BBL to grow through covid which worked but then the dip happened and the demand died but we had bills to pay, that stock was sold cheaper than planned and took 3 x longer. The CC is only minor, i can live with that and the Shopify loan was to clear the bulk of the CC as the rates are shocking.
If I put my head down, invest a bit more in to it and try to increase stock, sales whil paying off debt there is a slight chance we can bring this back.
Gassing Station | Business | Top of Page | What's New | My Stuff