HELP - Financial advice desperately needed!

[al55]

Hi

wonder if anyone knows where I can find good, independent advice for business financial problems...

Have tried a few IFAs but they really just want to sell you something...

In a nutshell:

Secured finance 6 months ago to purchase 2 sandwich bars based on accounts and figures supplied by vendor's solicitor. I produced cashflow and P & L, etc., and all seemed well. A few months after taking over I discovered that said accounts 'forgot' to mention some serious cost of sale items...

Because of these 'omissions' I am now struggling to meet interest payments on the loan (despite the shops doing good business).

Basically I'm stuck 'between a rock and a hard place' because, although I was technically mislead, I did sign on the dotted line...

...hence my need for some serious advice!

Regards,

al55

 

[Alpha]

Hi there

I think that you will find that the term caveat emptor applies to this transaction.

Apart from looking through the figures supplied to you did you engage any professional to perform any due diligence work (If so you may look to that individual for recompense)

If you have simply taken the figures on face value and the omissions are something that you should reasonably have been able to spot with some investigation I would say that you will have to accept that it is down to you and either trade out or write it off.

ps This is really not something that an IFA would get involved in. It is more likely to be in the domain of a solicitor or an accountant.

If there is any other aspects that you need advise on please don't hesitate to ask

 

[gary]

I agree, you should probably speak to a solicitor about this as they will be able to advise you. Choose someone who specialises in commercial contracts as that's their area of expertise.

Good luck!

Gary

 

[Ozzy]

Yes speak to a solicitor, and for what it is worth I have found http://www.wrighthassall.co.uk/ to be very good in commercial law. If you want a name have a word with Laurie Heizler.

 

[gj]

The first thing to do is a revised cashflow based on your experience over the last few months.

It will be tough to do because it may well show how bad the situation is - but it is important. You will then ba better able to consider whether it is something you can just trade out of, or whether you need to restructre the finance, or get additional finance. Look at the options available to you.

If you can put together a realistic business plan that shows a viable business, you should be able to talk to your existing bank or others, but unless you establish where you are, where you are going, and where you could be, you risk losing it all. Banks and others cannot help if you do not ask.

HTH

Graham

 

[Rob]

In line with Graham's reply you have to relook at your figures and go and see your Bank Manager asap. It's tempting to ignore the problem and not not say anything to the bank but they will soon get in touch (if haven't done so already) if you are struggling to pay the interest.

Part of the problem re business failures is keeping the Bank in the dark. Depending on the term of your loan you may be able to reschedule over a longer period to keep the repayments down. You mention 'interest payments' which suggests that you may have a capital repayment holiday. If this is the case, then your problem is going to be even bigger once repayment of the principle kicks in as well.

Gather your figures and arrange an appointment before the Bank calls you.

 

[StartUp]

Sound advice Rob!