Business troubles - please help/advise
Discussion
Long post, but please read, I need advice. In summary:
Business is fine, lots of things lined up, and next year is set to be a good one. But short term fortune/timing has left me in a real bind.
Quite a few deals just didnt come off (in the last few months) they all amounted to tens of thousands of pounds. If I closed half of them, Id have the money I need to pay taxes in January, but Im left about £12k short. I win most tenders I bid for, came second in every one. Hell, I was even told I was the preferred bidder and best choice for one contract in which 9 others were bidding, but due to a minor technicality I didnt get it, and roughly the same happened with the others too
So... Bad luck, bad timing. Its not a long term problem because Im never speaking to less than 50 people at any one time, everyone seems to want a website but im left in a bit of a pickle. I dont have 12k and I need it right now! I fly out to south africa for 3 weeks (in 2 weeks!) and wont be back at the beginning of Jan, I need to raise the cash before I leave.
Heres where im stuck.
1) I have about 7k of personal finance/debt, no assets, and I still rent. (not good for lenders)
2) Not very good credit. My credit cards were frozen years ago when I was made redundant, put into a debt scheme to pay them off slowly every month. Although I could have easily paid them off in one go many times over the years, I foolishly didnt bother, left them, paying them off slowly. This looks very bad.
3) I have about £15k of business finance. Perfectly managable, will probably all be paid off next year, its not a problem as such, but...
The problem is, I doubt anyone will want to lend me money personally, and my bank (knowing im on the back foot, and need money for taxes) wont lend it to me either
You cant convince a bank its not a problem when you have no assets to guarantee the credit you seek. Im in a catch 22 situation.
How do I raise £12k in 12 days? (no jokes please, girlfriend left me after 7 years last monday, and im feeling very very low right now)
Im dealing with the IR via my accountant, everything will be fine Im sure, but my immediate problem is finding a way of raising £12k. Not raising the funds isnt an option.
Advice please. And phone numbers too chaps, I need to make some calls, find some strings to pull on and hopefully sort this out in a very short period of time.
Many thanks in advance for any help/advice, much appreciated
Business is fine, lots of things lined up, and next year is set to be a good one. But short term fortune/timing has left me in a real bind.
Quite a few deals just didnt come off (in the last few months) they all amounted to tens of thousands of pounds. If I closed half of them, Id have the money I need to pay taxes in January, but Im left about £12k short. I win most tenders I bid for, came second in every one. Hell, I was even told I was the preferred bidder and best choice for one contract in which 9 others were bidding, but due to a minor technicality I didnt get it, and roughly the same happened with the others too
So... Bad luck, bad timing. Its not a long term problem because Im never speaking to less than 50 people at any one time, everyone seems to want a website but im left in a bit of a pickle. I dont have 12k and I need it right now! I fly out to south africa for 3 weeks (in 2 weeks!) and wont be back at the beginning of Jan, I need to raise the cash before I leave.
Heres where im stuck.
1) I have about 7k of personal finance/debt, no assets, and I still rent. (not good for lenders)
2) Not very good credit. My credit cards were frozen years ago when I was made redundant, put into a debt scheme to pay them off slowly every month. Although I could have easily paid them off in one go many times over the years, I foolishly didnt bother, left them, paying them off slowly. This looks very bad.
3) I have about £15k of business finance. Perfectly managable, will probably all be paid off next year, its not a problem as such, but...
The problem is, I doubt anyone will want to lend me money personally, and my bank (knowing im on the back foot, and need money for taxes) wont lend it to me either
You cant convince a bank its not a problem when you have no assets to guarantee the credit you seek. Im in a catch 22 situation. How do I raise £12k in 12 days? (no jokes please, girlfriend left me after 7 years last monday, and im feeling very very low right now)
Im dealing with the IR via my accountant, everything will be fine Im sure, but my immediate problem is finding a way of raising £12k. Not raising the funds isnt an option.
Advice please. And phone numbers too chaps, I need to make some calls, find some strings to pull on and hopefully sort this out in a very short period of time. Many thanks in advance for any help/advice, much appreciated
Ouch Bob!
Is the answear Yellow and in your profile, I know that will hurt as much if not more than your girlfriend leaving. But drastic times and all that.
Hope you get it sorted out though.
Edited to add, Probably not the help your looking for
Is the answear Yellow and in your profile, I know that will hurt as much if not more than your girlfriend leaving. But drastic times and all that.
Hope you get it sorted out though.
Edited to add, Probably not the help your looking for
Edited by trevorw on Monday 4th December 21:39
UKBob
Do you have any endowment policies? If so you could cash them or borrow from them.
Do you still have the Cerbera? If so can you get a finance leaseback deal on it (try Lombard Direct and other such companies) or sell it (probably at a vast loss though, but if everything goes well you can buy another one later), Do you have any 'mates' who would take the Cerbera on for £12K with a view to you buying it back for 12K in a years time?
How much would you save if you cancelled your visit to South Africa?
Sell your camera kit (another unpopular suggestion)
The reality of the situation, is that if you own the Cerbera outright, you should sell it prompto, pay off the tax man and the credit card debts, and be thankful that you've had the opportunity to own one of the greatest performance cars ever made.
Hope that helps
davidy
Do you have any endowment policies? If so you could cash them or borrow from them.
Do you still have the Cerbera? If so can you get a finance leaseback deal on it (try Lombard Direct and other such companies) or sell it (probably at a vast loss though, but if everything goes well you can buy another one later), Do you have any 'mates' who would take the Cerbera on for £12K with a view to you buying it back for 12K in a years time?
How much would you save if you cancelled your visit to South Africa?
Sell your camera kit (another unpopular suggestion)
The reality of the situation, is that if you own the Cerbera outright, you should sell it prompto, pay off the tax man and the credit card debts, and be thankful that you've had the opportunity to own one of the greatest performance cars ever made.
Hope that helps
davidy
Been there. Done that. Now use the t-shirt as a duster.
Couple of things...
First off (and you probably have already done this), tell those you owe the money to that they are not going to get tehir money on time. If you can pay something, then do so - that will keep most off your back.
You mention your pipeline is good. How good? Can you get signed orders or MOUs for the work? If you can, this will help swing things with the bank. However, you also need to show the long-term plan - 12 month cashflow, etc. That way, they can see that you're not just forcing the problem further down the road.
Have to agree with trevor on the car. Painful but needs must. Plus, if you factor this into your "pitch" to the bank, it's likely to add brownie points as they can see that you're serious.
The key with banks is that they need to see your plans to overcome the short term plus long-term planning. This is critical.
The other big, BIG tip is to be honest with yourself. I wasn't. I convinced myself that I'd trade through the problem and that it would all be fine in the end. Managed to convince others too. Ended up going belly up to the tune of £59k when I should have pulled out a year earlier owing little more than £15k. That was 13 years ago and it's very true that what doesn't kill you only makes you stronger.
Good luck!
Couple of things...
First off (and you probably have already done this), tell those you owe the money to that they are not going to get tehir money on time. If you can pay something, then do so - that will keep most off your back.
You mention your pipeline is good. How good? Can you get signed orders or MOUs for the work? If you can, this will help swing things with the bank. However, you also need to show the long-term plan - 12 month cashflow, etc. That way, they can see that you're not just forcing the problem further down the road.
Have to agree with trevor on the car. Painful but needs must. Plus, if you factor this into your "pitch" to the bank, it's likely to add brownie points as they can see that you're serious.
The key with banks is that they need to see your plans to overcome the short term plus long-term planning. This is critical.
The other big, BIG tip is to be honest with yourself. I wasn't. I convinced myself that I'd trade through the problem and that it would all be fine in the end. Managed to convince others too. Ended up going belly up to the tune of £59k when I should have pulled out a year earlier owing little more than £15k. That was 13 years ago and it's very true that what doesn't kill you only makes you stronger.
Good luck!
UKBob said:
Im dealing with the IR via my accountant, everything will be fine Im sure,
Famous last saying...
Good luck with your perdicament, I would realise the cash by selling the car, and any other assests you have.
I used to do turkey plucking in the evenings when I needed a bit of extra money. If your a good fast plucker you can earn a bit..... I was a good plucker !
If its not work related going to SA, dont go.
I think you will find it hard to get loans at this present time, but as other posters have said, contct the people you owe money too and let them know the cash problem.
The letting agent/owner of your property wont be happy if you default and you may loose the property but it will take some months for this to happen. They also have your deposit I presume.
At least you wont have to buy the Girl friend (ex) any presents!
Bob, sorry things are going badly for you. I'm not sure I have any different advice than the others.
If borrowing isn't an option (or sensible) then it's got to be get more money in - sell whatever you can or earn more money.
My OH Happy Snapper was made redundant last year and we're still suffering from it, he's just qualified as a driving instructor and has sold virtually all of his camera kit and stuff on ebay to provide some income whilst the business gets going. It's not easy and I have to sell the decision to sell his main camera was one of the lowest points for both of us. BUT it's got to be done to move forward...
So....sell the car, sell the camera kit OR make money from it - I know it's a horrible word but there really is good money to be made shooting weddings!
Good luck!
If borrowing isn't an option (or sensible) then it's got to be get more money in - sell whatever you can or earn more money.
My OH Happy Snapper was made redundant last year and we're still suffering from it, he's just qualified as a driving instructor and has sold virtually all of his camera kit and stuff on ebay to provide some income whilst the business gets going. It's not easy and I have to sell the decision to sell his main camera was one of the lowest points for both of us. BUT it's got to be done to move forward...
So....sell the car, sell the camera kit OR make money from it - I know it's a horrible word but there really is good money to be made shooting weddings!
Good luck!
Thanks everyone, for your advice, comments, suggestions help (and kindness david )
I think Ive raised the cash, without a loan
just waiting for confirmation on this. Whether I (need to?) put the cerb up for sale or not remains to be seen. Time will tell.
I love my camera far more than the cerb, would never sell it
And have spoken to my accountant re: informing the IR, but it looks like I wont have to take out a payment plan with them either.
Fingers crossed I make it through this, Im sure I will but touch wood nevertheless, that those wont be famous last words either - lesson learned. I crave security and never want to find myself in this position again.
) I think Ive raised the cash, without a loan
just waiting for confirmation on this. Whether I (need to?) put the cerb up for sale or not remains to be seen. Time will tell. I love my camera far more than the cerb, would never sell it
And have spoken to my accountant re: informing the IR, but it looks like I wont have to take out a payment plan with them either. Fingers crossed I make it through this, Im sure I will but touch wood nevertheless, that those wont be famous last words either - lesson learned. I crave security and never want to find myself in this position again.
Fer said:
Good luck Bob, and hope you can find a way forward that allows you to keep the most toys! 
It now looks like I cant. Parents are coughing up some cash, but since my last post Id be expected to do my part by putting the cerb up for sale, and see what happens. Fair enough I suppose, I can always buy another one one day. Ive found that in business, whilst most things come off in time, the actual timing is something you can never predict. I suppose its not entirely unreasonable that I do my part by trying to sell it, is it? Although its a cracking car, it might not sell before the business kicks off anyway, especially at this time of year. As always, time will tell...
Bob i know some time has passed since you asked for help on here but hopefully you won't need it but in future if your getting work in and get them signed up to a contract have you ever considered factoring your invoices granted they charge but you can get some real low rates and having the money in the bank helps cash flow and usually makes you about 1% intrest after there charges whilst in the bank also if you needed to raise money on the car try logbook loans but don't accept rates they give you argue with them a little hope it helps a little
magicman07 said:
Bob i know some time has passed since you asked for help on here but hopefully you won't need it but in future if your getting work in and get them signed up to a contract have you ever considered factoring your invoices granted they charge but you can get some real low rates and having the money in the bank helps cash flow and usually makes you about 1% intrest after there charges whilst in the bank also if you needed to raise money on the car try logbook loans but don't accept rates they give you argue with them a little hope it helps a little
You know, every single aspect of my life has changed since I broke up with my girlfirend several weeks ago. Although there is only a few k outstanding on the car, even though I know I could wangle things and keep the car if I chose to do so, the desire to clear ALL my debts in exchange for peace of mind, and clear the slate is overwhelming (in a good way). Having decided to sell, Ive made up my mind already and am just looking forward to being debt free, and being debt free is more important to me than keeping a car I can always buy again another day. If that makes sense. Is the general wisdom that you should put money aside for taxes as you get the income? It doesn't seem sensible to go on with expensive sports cars etc until you've cleared all debts and able to SAVE (not borrow) enough to buy and run it. The way I see it, as long as you in debt you have to live on less than your earnings. Once you are able to start saving, you can live on more than your earnings.
jamesuk28 said:
Here here, you cant put a price on a good nights kip, not c.rapping yourself everytime the phone rings or post comes. Debt free is something everybody wants but not many people achieve so GOOD for you BOB.
Cheers James GreenV8S said:
Is the general wisdom that you should put money aside for taxes as you get the income? It doesn't seem sensible to go on with expensive sports cars etc until you've cleared all debts and able to SAVE (not borrow) enough to buy and run it. The way I see it, as long as you in debt you have to live on less than your earnings. Once you are able to start saving, you can live on more than your earnings.
At the end of the day, the responsibility to put aside tax money ultimately rests on my shoulders, Im starting two new businesses this year and with luck I'll be back 100% debt free before the end of the year Gassing Station | Business | Top of Page | What's New | My Stuff