- Original Poster
- #1
Hi,
Sorry in advance for what will be a bit of a long winded essay but in being thorough I'm hoping it will be a little easier for someone to help
I have a small limited company that has been trading for just under 2 years, ecommerce company selling womens fashion products. Profitable year 1 however last 6 months business has completely crashed struggling for an explanation nothing has changed (maybe the problem)
My big problem is cash flow, I have stock with a retail value of close to £70k, cost value of £30k and approx 30k worth of debt 15k to suppliers 8k to royal mail 7k to advertising. Usual monthly costs outside these due debts are approx £1500
Turnover is down to 12k per month (down from £40,000 same time last year) and with almost all my debt overdue or due in the next 3 weeks there I'm sure you can see my problem
I am now at the point where I can't afford to send out orders and due to missed payments Royal Mail have closed my credit account
I'm wondering if anyone can recommend my best course of action? I originally thought I could ride it out until Christmas my busiest period get rid of the majority of stock then close the company with money in my pocket however it's looking less and less likely that the company will make it that far
Obviously coming out of this situation with a business or at least some money in my pocket would be ideal is there any way to make that happen or is it a case of cutting my losses due to me having stock worth more than my debt I'm wishfully hoping there is a not too painful way out of this situation
Any recommendations for companies that could help me/guide me in this situation?
Thank you in advance
Regards
Sorry in advance for what will be a bit of a long winded essay but in being thorough I'm hoping it will be a little easier for someone to help
I have a small limited company that has been trading for just under 2 years, ecommerce company selling womens fashion products. Profitable year 1 however last 6 months business has completely crashed struggling for an explanation nothing has changed (maybe the problem)
My big problem is cash flow, I have stock with a retail value of close to £70k, cost value of £30k and approx 30k worth of debt 15k to suppliers 8k to royal mail 7k to advertising. Usual monthly costs outside these due debts are approx £1500
Turnover is down to 12k per month (down from £40,000 same time last year) and with almost all my debt overdue or due in the next 3 weeks there I'm sure you can see my problem
I am now at the point where I can't afford to send out orders and due to missed payments Royal Mail have closed my credit account
I'm wondering if anyone can recommend my best course of action? I originally thought I could ride it out until Christmas my busiest period get rid of the majority of stock then close the company with money in my pocket however it's looking less and less likely that the company will make it that far
Obviously coming out of this situation with a business or at least some money in my pocket would be ideal is there any way to make that happen or is it a case of cutting my losses due to me having stock worth more than my debt I'm wishfully hoping there is a not too painful way out of this situation
Any recommendations for companies that could help me/guide me in this situation?
Thank you in advance
Regards
