Business needs funds urgently

Hello - my wife and I run a small business that is doing quite well in general. However, because of the type of work we do (project-based), the work can be sporadic and we had a lean period of no work before Xmas , so there is no money due into the company until March/April, after we've finished the current project at teh end of this month. we currently have no money in the bank but a long list of creditors, including 4 employees. For months we've been working on getting a loan to bridge the gap between now and March/April but because we were unexpectedly broke b4 xmas we missed two loan payments and have been refused loans by almost all the banks because of that. We applied to one bank and tehy seem positive but haven't given us a definite answer despite daily calls = all they say is that the decision stillh asn't been made by the board. My wife and I are under a huge amont of pressure now - our priority is the employees, but also our own mortgage payments are due etc. We don't have savings and because we haven't received salary in a fwe months, we can't get personal loans. Does anyone have any ideas.

What about your local credit union? Maybe they could support your business on a temporary basis.
Also what about invoice discounting, you show the invoiced work and get a loan of a percentage of the invoice value.

However, while not wanting to make your position/stress work, it sound like your business in simply not viable or not run efficiently enough. As you know business is all about cash-flow...you ain't got it so is the business really viable ? I assume your staff are on protective notice or short-time at this stage but that puts enormous strain on the relationship as well.

8till8 said:

I assume your staff are on protective notice ...

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Good point. And if this is a limited company then you need to be careful that you don't trade recklessly in breach of the relevant responsibilities of a director.

Can you sell an asset like a car?

Can you pawn any jewellry?

What type of skills do you both have - can one of you get paid employment quickly while the other continues in the business?

Can you get a credit card with a interest free initial period?

Is there some product or service that you can offer to your past customer list and offer them a great rate in return for advance payment?

Can you rent out any rooms in your house to bring in income which would be tax free under the rent a room scheme?

Can you contact your mortgage lender and ask if you can take a payment holiday on your mortgage if you have one

Without knowing what kind of skills you have or business you are in it is hard to give any more ideas.

ya - invoice disounting is what you're looking for i'd say.

There are a few of these Invoice Discounting firms. I believe Anglo do it as well. From 60% up to 90% payable ..... then the rest on customer payment minus fees. But remember they only take on sure things. Best of luck.

Po' boy - let's try and work this one out. What sector of industry is the first question. Second if you have done work, why didn't you arrange for stage payments. You are giving six months credit which in my opinion is crazy, unless you are making a massive margin. Will be hard to find as bank to take on Invoice discounting if not a limited company. Would say Ulster Bank could be your best bet at this stage.