Short Term Loan / Cash Solution

[EssexRogueTrader]

I am looking for a short term cash solution so that the organisation I work for can cover wages etc. this month.

The organisation is a partnership with 5 partners and 7 staff. The cash has been taken up mostly with running costs and the senior partner taking cash for himself (drawings), which is totally above board for the partners.

The turnover is approximately £3M.

We are next due a slice of that in early January when we receive a management fee. It will be approximately £450K.

Do banks offer short term loans for maybe 2 months in order to ride through the tight periods? If so, what are the chances?

 

[InBetweener]

I am looking for a short term cash solution so that the organisation I work for can cover wages etc. this month.

The organisation is a partnership with 5 partners and 7 staff. The cash has been taken up mostly with running costs and the senior partner taking cash for himself (drawings), which is totally above board for the partners.

The turnover is approximately £3M.

We are next due a slice of that in early January when we receive a management fee. It will be approximately £450K.

Do banks offer short term loans for maybe 2 months in order to ride through the tight periods? If so, what are the chances?

One thing in business is to ALWAYS make sure you have money to pay your staff. Your staff are your business.

May be tough to get any sort of loan due to your current situation and the fact that banks are being more rigid on loans due to the current climate.
I do hope someone can help you and more importantly your staff who may face no wages at Christmas. Well done!

 

[InBetweener]

Hi there

Before going for a loan actually, why don`t you get your overheads assessed?

I am absolutely sure you could save a nice amount of money there, money you could use to reinvest in your business.

You can benefit on a free overheads assessment, so everything is costless.

Please PM if you find this of any interest.

Cheers

A good idea, although I cant see this producing the savings and money required in such a short period of time, but I for one am always one for cost saving n overheads, so I suggest you look at this also

 

[internetspaceships]

You're saying that the senior partner's drawings have put the company in a situation where it can't pay its staff?

Tell him to put it back in then until the next £450k lands.

That's no way to run a business.....

 

[businessfunding]

Whilst I'm inclined to agree with internetspaceships, I would add that there are short-term finance facilities available outside the banks.

These will need to be secured against assets, which might be business assets (invoices, buildings, vehicles etc) or Partners personal assets - which would seem appropriate in this instance.

PM me for more detail.

 

[assetcash]

Yes there are other facilities out there. We offer something like this to Ltd Companies. Take a look at our site and if we can help, please feel free to contact us.

Gordon
assetcash.co.uk

 

[andygambles]

The bank will likely immediately question why the senior partner would not return all or at least part of his drawings.

The bank will (quite rightly) say why should we risk lending you money if the senior partners wont take a risk as well?

 

[EssexRogueTrader]

Thanks everyone. Those who talk about partners withdrawing funds are quite correct. We have been given a solution by way of a loan from an associated company.