"no one wants to borrow" (Full Version)

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LadyEllen -> "no one wants to borrow" (3/2/2010 9:09:17 AM)

I wonder if anyone else found the comment last week from the association of British bankers, that the reason they had not lent so much to businesses because the businesses didnt want the money, rather patronising and nauseating, not to mention an outright lie?

Even RBS and Lloyds HBOS, both more or less owned by we the taxpayer and both in receipt of significant (to say the least) additional taxpayer support in terms of bail outs and debt guarantees, failed to meet their government mandated lending levels to businesses.

To join the chorus of disbelief (though its becoming cynical acceptance) at what we were told, here is my situation - we have contracts waiting us from reputable, reliable customers with agreed prices and payment terms that make the contracts eminently profitable to a level double the normal for our sector. We need to get more equipment to service these contracts and we can stump up a sizeable proportion of the cost - but the banks wont touch it with a bargepole. And we're by no means alone in that experience - and those who are offered lending are being offered it at such a rate that they cant possibly make a profit.

So, if anyone has a spare £100k they'd like to invest for a threefold return over three years, please do let me know? It seems we have to look to each other to produce recovery and generate jobs - the banks have theirs already thanks.

E



pahunkboy -> RE: "no one wants to borrow" (3/2/2010 9:12:11 AM)

credit unions are asking congress to loan MORE money.



Rule -> RE: "no one wants to borrow" (3/2/2010 9:38:11 AM)

quote:

ORIGINAL: LadyEllen
So, if anyone has a spare £100k they'd like to invest for a threefold return over three years, please do let me know? It seems we have to look to each other to produce recovery and generate jobs - the banks have theirs already thanks.

Ask your employees if they can and will support the company financially.



LadyEllen -> RE: "no one wants to borrow" (3/2/2010 1:56:38 PM)

You must be joking Rule - no one amongst we peasants has any more than will feed and clothe us for another month.

E



Rule -> RE: "no one wants to borrow" (3/2/2010 2:32:24 PM)

Spring and summer is coming. Stow all of their furniture in storage and let them live on the streets. Recommend them good bridges to sleep under. It will save them rent and heating and utilities costs which they can invest in the company. When the next winter arrives rents will have dropped because of all the empty apartments and they will be able to rent their old homes at reduced prices.



LadyEllen -> RE: "no one wants to borrow" (3/2/2010 2:33:52 PM)

Sounds a reasonable plan Rule, apart from those pesky laws that have come into being since the mid 19th century.

E



Moonhead -> RE: "no one wants to borrow" (3/2/2010 2:36:02 PM)

Hell, I tried to sell my mother to the pawn shop over the weekend and they weren't buying...



LadyEllen -> RE: "no one wants to borrow" (3/2/2010 2:38:38 PM)

try Wolverhampton market MH - apparently its still the case under some ancient law that you can sell your wife down there as long as you bring her, like livestock, dragged behind you on a rope. Might work for mothers too, but best check with the Council first perhaps.

E



Moonhead -> RE: "no one wants to borrow" (3/2/2010 2:54:23 PM)

That might work.



NeedToUseYou -> RE: "no one wants to borrow" (3/2/2010 3:10:28 PM)

I wish I had 150K lying around I'd probably loan it, (given background check etc..).

Unfortunately most people don't have that much lying around as most money that large, is invested already. and tied up in real estate, CD's or the markets. .

I for example, would invest a few thousand (given checks, etc), but how does one pool investments, on the fly, there is no real mechanism for such.  Prosper.com is the nearest thing, but unfortunately they don't do loans that large, and a few thousand probably wouldn't solve anything alone, but if there were a better mechanism outside the stock market, for such it probably would be helpful in these times.

Maybe you can do a stock offering somehow? Unfortunately, to engage in such you'd have to expose your business, and personal identity as well. So, don't know.











LadyEllen -> RE: "no one wants to borrow" (3/2/2010 3:19:06 PM)

In theory we could register a plc company, publish a prospectus and sell shares to anyone we wished. In reality, the costs involved in doing that may easily consume tens of thousands of pounds due to the professional services required, before we even started. And then there's the issue of control - the shareholders own the business, not us, and they could just as easily throw us out as keep us.

It could be done through a Ltd company, but then it cant be a general public offer but rather through approaches to prospective shareholder investors - those with private wealth. Short of sending out mailshots to all and sundry in the hope of finding such a person or persons with such assets available or readily convertible to cash however is not an effective strategy and if you want an introduction to such persons, you have to put down five to ten grand fees to register with the introduction agencies and then pay a commission of many tens of thousands more upon success - which is not guaranteed.

E



Smutmonger -> RE: "no one wants to borrow" (3/2/2010 3:23:34 PM)

I wish they would have just let these banks fail-taken them over and then rented out the repossesed housing to recoup the money. We would be in a lot better shape,and money now being squandered by these large banks could have been better put into supporting small businesses with low interest loans.



Rule -> RE: "no one wants to borrow" (3/2/2010 3:43:12 PM)

Do it the grass root way: talk to your employees and have them talk to their acquaintances. All you require is one hundred people to invest one thousand pounds each, or one thousand people investing one hundred pounds each. Have them start an investment society or some investment company for tax and legal purposes, that will cost you perhaps a couple of hundred pounds - or them two pounds each. (Ehm, I want to add that I do not know anything about finances.)



NeedToUseYou -> RE: "no one wants to borrow" (3/2/2010 3:53:05 PM)

quote:

ORIGINAL: LadyEllen

In theory we could register a plc company, publish a prospectus and sell shares to anyone we wished. In reality, the costs involved in doing that may easily consume tens of thousands of pounds due to the professional services required, before we even started. And then there's the issue of control - the shareholders own the business, not us, and they could just as easily throw us out as keep us.

It could be done through a Ltd company, but then it cant be a general public offer but rather through approaches to prospective shareholder investors - those with private wealth. Short of sending out mailshots to all and sundry in the hope of finding such a person or persons with such assets available or readily convertible to cash however is not an effective strategy and if you want an introduction to such persons, you have to put down five to ten grand fees to register with the introduction agencies and then pay a commission of many tens of thousands more upon success - which is not guaranteed.

E


Well, my whole thought, was if there is simply a way to verify your business, and make available your books via a third party. It would seem, there would be enough 1-10 K investors, among these boards, and people you know and your employees know, or are aquainted with to fulfill a 150,000 dollar investment.

As it's very doubtful one person is going to have that much available in one go, or be willing to risk that much in one spot.

Like I'd part with a few thousand, mostly just off your presence on the boards and  my gut says you are trustworthy, but would still need some kind of proof of the business function. So, you just need 50 people willing to part with 3K, I bet at least a few up here would invest if it were formalized.

I'm not an accountant though, I only have this one S-Corp, and there are only two shareholders, so it's simple. And I don't even talk to the accountant except when required, though I watch the numbers like a hawk, on my own. So, I don't know what form that would take.

Anyway, my point is that it seems the primary problem you have is finding a cheap verifiable mechanism of investment, and  a method via a third party to verify your numbers and responsibilities.











LadyEllen -> RE: "no one wants to borrow" (3/2/2010 4:00:06 PM)

It really did ought to be that simple NTUY I agree, although we havent yet entered into the joys of anti-money laundering and terrorist funding regulations, not to mention the raft of other regulations to go through for such an arrangement. A lawyer and an accountant would be needed to even make a start on this stuff, let alone to deal with the aspects you raise - and therein lies a problem in itself - the proportion of the required investment we could put in ourselves would be easily consumed by such professional services and in a very short time, such that if the investment werent forthcoming then the whole thing would become a drain rather than the fulfilment of an opportunity.

Your confidence in me personally however is much appreciated.

E



Silence8 -> RE: "no one wants to borrow" (3/2/2010 6:40:15 PM)


quote:

ORIGINAL: LadyEllen

You must be joking Rule - no one amongst we peasants has any more than will feed and clothe us for another month.

E


'amongst we peasants?'

Whatever happened to that famous British control of English grammar?

Things must be really bad...



LadyEllen -> RE: "no one wants to borrow" (3/2/2010 6:44:25 PM)

common as muck m'dear, whaddya expect?

"we peasants" is here an adapted pronoun, akin to "we the people", you see?

E



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