Monday, 11 June 2012

A Bankable Proposition

I have been approached to assist in finding some finance. It serves as a good example for one major problem in cases like this. In this example the basic business is a substantial farm in Southern Ireland that wishes to clear some existing loans and finance a new building as well. 
The business' Accounts show some evidence that he can meet the cost of finance from his current trading but we are going to have to explain the position with these existing loans. I can think of a couple of scenarios where that might be okay still, but we need to establish why they can't raise the money locally as would be expected. 
If he is in dispute and can explain reasonably that is one thing. If he is in trouble financially that is another. The Accounts look reasonable but we are also told he has not made payments to the 2 biggest lenders in the last year. 
The basic question will always be – why does he want to borrow in the Uk rather than locally? There have to be good reasons and a sound background or no one will touch it. If local people won’t touch it why should anyone else? That’s the thinking. We have to explain around that with sound arguments.
Any thought that the local lenders are pressing or are chasing probably wrecks any chance that we can raise money to clear the existing borrowings let alone new money as well. 
Bob Shepherd Associates has the experience and background to turn a proposition into a bankable approach, but only if it is reasonable!

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