- Location
- Ceredigion, wales
Best suggestion so far. Seen a couple of seemingly well run companies go bust locally due to slow payers and big customers going bust.
Lending money to Mr A using Hp as collateral...
- Thread starter Doing it for the kids
- Start date
Sussex Martin
Member
- Location
- Burham Kent
Pay bills after 14 days
, we have orders arriving on a daily basis which would mean paying bills every single day. Totally impractical in most businesses 30 days net monthly is the preferred method here.If he goes pop then it's the administrators that decide what happens and you could end up being at the back of a very long queue.
Goweresque
Member
- Location
- North Wilts
Apart from all the other points mentioned as to why this doesn't seem like a very safe bet, the other to bear in mind is plant has wheels, and as such can mysteriously disappear when the axe is about to fall..........land and houses don't go anywhere, thats why banks etc lend against them.
If a HP company takes something back, they don't care how much it fetches as long as their debt is covered. NO
caveman
Member
- Location
- East Sussex.
Its a load of bollox.
Mr. A is spinning you a yarn.
Unless he is a new start up, he should be well in the swing of running his business giving 90 day credit. Money would still come in regular.
He has however got protection from competitors who could not hope to survive on 90 day credit terms.
He either needs to slow down a bit and consolidate for a couple of months or take a sleeping partner who will invest capital for a share of the business.
Mr. A is spinning you a yarn.
Unless he is a new start up, he should be well in the swing of running his business giving 90 day credit. Money would still come in regular.
He has however got protection from competitors who could not hope to survive on 90 day credit terms.
He either needs to slow down a bit and consolidate for a couple of months or take a sleeping partner who will invest capital for a share of the business.
Dealer
Member
- Location
- Shropshire
Is Mr A a limited company?
If so sell shares in the business to Mr B. That way Mr B has part ownership of the business and dose not have to worry about individual assets
Depends on the net worth of the business
The company sounds to be over trading. Short term would be easier to sell some assets that have least finance to raise capital to fund deposits for new assets.
If so sell shares in the business to Mr B. That way Mr B has part ownership of the business and dose not have to worry about individual assets
Depends on the net worth of the business
The company sounds to be over trading. Short term would be easier to sell some assets that have least finance to raise capital to fund deposits for new assets.
Dealer
Member
- Location
- Shropshire
They are legally bound to get best price then customer gets any value above debt outstanding less fees for selling..
Goweresque
Member
- Location
- North Wilts
The law says all sorts of things, how situations turn out in practice often can be quite different. I have no doubt that once all the relevant suits had taken their fat expenses (all perfectly legal of course!) from the sale of any machinery there would be the square root of b*gger all left for Mr B.
Exfarmer
Member
- Location
- Bury St Edmunds
It stinks!
The kit is probably leased with a provision that if, Mr A goes bust the whole lot reverts to the lessee.
There may well be similar on his property.
Remember, the banks are in the business Of lending money, that is their reason d'etre, if they wont give him the money why?
The kit is probably leased with a provision that if, Mr A goes bust the whole lot reverts to the lessee.
There may well be similar on his property.
Remember, the banks are in the business Of lending money, that is their reason d'etre, if they wont give him the money why?
Doing it for the kids
Member
Yeah a few I think. I suggested mr b buys what ever it is needed in his name and rents to mr A.
Lots of helpfu info on here, thanks. I'm going to type this all up and sell it to mr b as advice and split the proceed with you all
Well, maybe not the last bit
renewablejohn
Member
- Location
- lancs
Walk away. Sounds classic teeming and lading.
Agree 100% if it was a good bet, sound business with good enough security a bank would lend
The fact they won't should ring alarm bells
Cowabunga
Member
- Location
- Ceredigion,Wales
Bernie Madoff was seen by all and sundry as being very honest and capable. Until the shite hit the fan and he lost investors millions [each in some cases] and their life savings.
Banking is for bankers. If you are going into the banking or money lending business, DON'T! Not unless you are prepared to lose it all or you have cast-iron security all tied up by capable legal experts.
Let him persuade investment funds or his banks to extend him further credit. If they will not do it, there is probably a good reason.
If Elon Musk can do it, so can he.
Banking is for bankers. If you are going into the banking or money lending business, DON'T! Not unless you are prepared to lose it all or you have cast-iron security all tied up by capable legal experts.
Let him persuade investment funds or his banks to extend him further credit. If they will not do it, there is probably a good reason.
If Elon Musk can do it, so can he.
Old McDonald
Member
- Location
- Harray, Orkney
There is not a lot that can be added to that. If Mr A has such a good business and is short of cash then he does not have the ability to be any bigger.
I would not lend to him - even if he cut back on his ambitions. If you would, then you are a gambler, and gamblers always run the risk of losing all their stake.
masseybreaker
Member
- Location
- wakefield
its a f--king con ask yourself why has he come to you and not the rest of the population of england its like the 20k tractors advertised at 5 k but bigger your money will drop into the bottom of a big hole never to be seen again
Anyone else curious as to what Mr. A does?
Campbell
Member
- Location
- Herefordshire
Only ever bet or lend what you are prepared or accept to loose. That way there are no surprises.
wasted years
Member
- Location
- Cumbrian born and bread
Your question is how safe is it to take machinery as collateral when the machinery is still on HP.
The answer is very unsafe as even with small levels of HP the machine belongs to the finance house and if MR Big gets into trouble you don't actually have a claim on it until the HP company is paid out.
The real skill here is to understand the HP left on the machines offered and the values of the machines if they had to be sold.
The answer is very unsafe as even with small levels of HP the machine belongs to the finance house and if MR Big gets into trouble you don't actually have a claim on it until the HP company is paid out.
The real skill here is to understand the HP left on the machines offered and the values of the machines if they had to be sold.