Just spent the last month of my life putting together a business proposal for the bank to lend me some money. Being too big a deal for pleb one, and pleb two, has to go to head office. Head office say it breaches guidelines (that's guidelines, not rules, guildelines which can be stretched slightly when it makes sense) by 15 grand and have cut back offer by said 15 grand. Well that's my cash flow you've taken away you knobs and what is the biggest killer of start up business's. Poor cash flow. Can't you find it from somewhere else they ask! If I could find it from somewhere else do you think I would be asking you blood sucking W@nkers for it in the first place.
Cash flows, 5 year plan, P and L's worst case best case The whole fecking shooting match. Which banks are the best at the minute?
I had this problem some 20 years ago, and in the end I took some advice from an industrialist who I happened to meet on a plane. I followed his advice,and obtained all I needed from AMRO in Amsterdam. I had incidently wasted 3 months, spent some £14K on Accountants and Lawyers, and got absolutely nothing from the City of London.
RE: Cash flows, 5 year plan, P and L's worst case best case I understand that Barclays and RBS are in the market. Did your accountant do the once over on your plan ?
RE: Cash flows, 5 year plan, P and L's worst case best case Looks like I'll be taking a walk further up market hill then. Don't yet have an official accountant, don't want to waste money till I've had an indication from the bank whether it's a goer. An accountant friend told me about the lending guidelines. Whilst the plan holds water I need the extra 15K for cash flow just in case the demand is seasonal, and lets face it which business isn't seasonal. Sure as eggs are eggs the bank came in spot on the guidelines, with the immortal words, "we're impressed by your plan and have faith in you, especially as you're prepared to risk everything you have, so we're prepared to lend you 15k less then you've asked for"
RE: Cash flows, 5 year plan, P and L's worst case best case Try to see a business manager not the local muppet!!!
Don't you know of any investors? There are always private people that are willing to lend money. Problem is you'll probably have to give them a % of your business!
And here-in lies the problem I could probably raise the money from friends and family, but then they want the share of the profits, and worse a say in how the business is run. Thats too scary. My mum telling me what to do for the rest of my life!!! Bank number two is the first option. Just have to tweek a few of the figures first to give me a better chance of hitting those guidelines!!
Naaaaaa If you own 51% of the firm you can tell then to shut up amd leave you to it. You could also make a clause in your contract that. You as director/manager of the firm can have 75% of the profits paid out as a bonus. Then what is left is the remainding 25% that you also have a major share of. Simple, some people know how to make money you see!
Maybe an accountant isn't such a waste of money! But then, I knew someone on here would be able to point me in the right direction without paying an accountant.
Thanks for the advice I'll start with the banks, but will try friends and family if that fails. I'll get an accountant cos it seems like a good idea. Anyone know a goods one. Or do I need a solicitor first?
Not tax efficient What are the tax brackets over there? For income and dividend? It shouldn't take a genius to do the sums and find out where the line goes. I know of someone who did well from an agreement like that!
RE: Thanks for the advice Don't really need a solicitor to start off with unless you have leases to arrange etc or business partners when you probably need some form of enforcable agreement. This is so you can wave it under their noses when you fall out !!!! ff . Bank may recommend that you contact one before you sign any business loan / overdraft facility letter so that you can get independent advice as to where you stand (particularly if it goes tits up !!!)
RE: Not tax efficient Generally it's when a company starts paying Corpn tax at 30%(profits over £300,000). The real saving is the national insurance which is not payable on dividends.(blagger) How are you doing by the way ? Calling me thick last night !!! the outrage !!!!! and this from a graduate of Eaton er sorry Whitecross was it ??ff
Aye, not too bad Summer hols over here. In one week God willing i will be in Barnsley. Probably see you in the OP before the Swindon match.
