companies with cash shortage

[prostang]

hi
there must be at the moment a lot off small viable companies going to the wall due to lack of cash. were can theses be found im looking for new avenues to explore.
any ideas

[Eric Mc]

What - you have lots of cash to give away?

[prostang]

no,but my present business is going to change next year as a major client is taking the work in house, so am looking for new options

[groomi]

Not helped by many larger companies deciding to keep hold of their cash as long as possible and delaying invoice payments - probably hoping for the minnows to fold.

[Eric Mc]

So you are looking for potential customers who have cash fl;ow problems.

They're the types of customers I'd be doing my best to avoid.

[prostang]

there must be companies out there that have stretched therselves with expanstion and the bank pulls the plug on the overdraft and bingo its bust everyone out of work, maybe i got it wrong and the banks are bending over backwards to help the small business, best keep the money in the bank and live off the 3% intrest

[Eric Mc]

I'm not arguing that there are lots of businesses out there in big trouble.

What you haven't explained is how your business idea can help such businesses. If they are unable to extend their credit - what are you giving to them that will help them out?

Are you a loan shark?

[prostang]

loan shark is a good idea, but im looking to buy the into the company

[Eric Mc]

Asset stripper?

[The Moose]

Eric Mc said:

Asset stripper?

Surely most little companies who are having cash flow problems and about to go to the wall would be trying to strip themselves of their current assets??

[Eric Mc]

If they are in a position to sell them - or haven't got an emotional attachment to them. Owners of small companies often carry a lot sentiment with them regarding their businesses.

[The Moose]

I know what you mean - think with your head, not your heart, right?!?!

[Eric Mc]

Small owner-managed business come with a huge amount of time and effort invested by the founder. They therefore find it very difficult to think about their business in a dispassionate, rational way.

[_Voyager_]

I assume you have 100k+ cash and dont mind losing it all?

Why not register with your local business angels group?

[VEX]

If we were in the position to be looking for such a person, what sort of return and info would you be looking for.


V.

Edited by VEX on Tuesday 30th December 21:50