mineshalffull
Member
would i be right in thinking if Bernard Mathews owed the supermarkets money that would be for shelf space (tescos over 1 million)and if so would abp and dundia and all the other primary meat processors be on the same (racket)
Lots of Rumours Wellgrain has gone bust?
- Thread starter Spashett
- Start date
- Location
- West Suffolk
What is a contra?
- Location
- Bury St Edmunds
No idea what "invoice financing" is either ....
- Location
- West Suffolk
Ha ha, all this is another world to me!
- Location
- West Suffolk
I'm very surprised other firms weren't brought down with them, going on some of the sums involved.
It was said somewhere that some of the firms didn't want to kick up about it as they wanted to continue trading with BM!
This is turning into a BM thread!
It was said somewhere that some of the firms didn't want to kick up about it as they wanted to continue trading with BM!
This is turning into a BM thread!
Courier
Member
- Location
- M62 - M1 - M18 triangle
Contra is when there is a similar sum owing in the other direction as well.
Invoice finance is when you receive 80 - 90 % of your invoice from a finance house within 2 - 3 days of raising the invoice and then the balance when the customer has paid the finance house in full ( less a "factors discount").
If not paid in full within 90 or 120 days then the sum would be claimed back from you by the finance house ( less fees).
Basically it is a short term loan with the value of the invoice taken as security, it can be very useful where a business has wildly fluctuating income whist it is growing and does not wish to pay for a facility which it will not be using. Also the finance house should send monthly statements and chase invoices on your behalf .
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Honest john
Member
- Location
- Fenland
It's where your Bank, Finance your Cash flow. Or your invoices if you like.
So the bank pay you 80-90 % at a number of days after you issue the invoice. The other slice less there charge when the invoice is payed.
Should you go bust which you probably will ( as bank is taking your margin ) then the bank get there money from your customer.
So if A grain trader was factoring on a 2% margin trade & paying the Bank 2% to Factor their account you can see over time they will for sure go bust.
A small bad debt would then soon become a major issue.
Do/have potato merchants go bust? Never heard of it. Or is it all cheque/cash on collection?
- Location
- norfolk
We produce around 14 million tons of wheat each year. Should we be looking at setting up a scheme of paying a levy so we self insure against this sort of thing?
10 pence/ton would bring in £1.4 million a year. After a few years there would be a substantial amount which some could be used for promoting the good that farming does rather than the negative press we seem to attract.
Grain traders have gone bust in the past and will in the future.
I'm sure that's too simplistic to work but is it worth some thought?
10 pence/ton would bring in £1.4 million a year. After a few years there would be a substantial amount which some could be used for promoting the good that farming does rather than the negative press we seem to attract.
Grain traders have gone bust in the past and will in the future.
I'm sure that's too simplistic to work but is it worth some thought?
- Location
- West Suffolk
Yes, MBMG a few years back. We were lucky as we got what was owed. It is a worry as 4 weeks worth of spuds at the current money is a lot.
- Location
- Huntingdon
Didn't the administrators trade the company out of a hole in that instance thus maximising the return to the creditors?
C B
- Location
- Lincolnshire
Gleadell were insured re Bernard Matthews and take credit insurance as policy.
Courier
Member
- Location
- M62 - M1 - M18 triangle
Spent a lot of time in the early 70's waiting outside his house for "Barry" in Doncaster - got paid in £10 notes.
foxbox
Member
- Location
- West Northants
First Eastern Counties Buses were owed £148k, that's a hell of a lot of free bus rides!!
In Norfolk a Potato business called Preva went bust last Christmas ...
http://www.dissmercury.co.uk/news/t...va_produce_goes_into_administration_1_4835347
Which are the blue chip grain merchants?
but then even they could have problems
https://www.ft.com/content/317edc68-c1e8-11e6-9bca-2b93a6856354
but then even they could have problems
https://www.ft.com/content/317edc68-c1e8-11e6-9bca-2b93a6856354
Honest john
Member
- Location
- Fenland
Yes we got I think approx 95% on the small amount outstanding. They traded out the season to get paid up on MBM stocks.
The Bank saved a lot of their farming customers & possibly the value of land & rents as well.
So saving there own bacon at the same time.
Quite so, Honest john.
Everyone should have stopped trading with them when they first sold their soul to RBS in 2012.
http://www.businessweekly.co.uk/news/agriculture/13428-wellgrain-secures-£12-million-abl-funding-deal
edit:- actually it may have been 2006.
https://s3-eu-west-1.amazonaws.com/...5EuG/qnW7W5pwvu0doMdsRCh4Tx9+eJbw2Ioon72KxgU=
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Honest john
Member
- Location
- Fenland
Did really quite well to last 5 yrs Factoring.