Forum Replies Created
Veteran Forum Contributor [3219 posts]
Posted 01/06/2005, 01:45:45I am interested in two things…
1. What makes you think your wife cannot get half or more of your company?
2. Why do you think that more experienced and much larger operators pay more than a one-out operator like yourself?
I dont think companies like woolies etc pay more than me.However it is getting t the point where there is not a lot of different .
Apart from big companies there are other who are in the game and unless they know exactly who China works they are in for problems.I have an associate there who like me had nothing.He was just on a Chinese wage.I put money in his pocket and he chases down companies who manufacturer not merely trade because he knows if we deal with a factory we can make more money.But apart from that we have places like woolworths covered because even though woolies and gerry harvey may buy cheaper they also need to ship the goods around the country.Shipping is expensive.We do it a different way and it is working.
It may not work for ever but it is working now.I put my heart and soul into this company and you ask why I dont think anyone can come and take it?EG someone may want to sue it?Or someone may think they are entitled to it? or something similar?This company is mine.I worked 20 hours a day to grow it.Anyone ties to harm it and they would be removed from the equation.
gf
Posted – 31/05/2005 : 15:26:25
You are in for a shock if you think it is YOUR company. Your wife owns half of it at the very least. Probably more!!!What are your terms by the way? Do you just want the money for FREE and unsecured?
The Mortgage Adviser
Anyone who tries to take it is in for a much bigger shock I can assure you.
My terms?Do i want it for free?No I am happy to pay the going rate.Do I want it unsecured?Well if I am paying unsecured rates then yes.Although that ishypothetical now because I am not interested in borrowing it now.I have been paying cash for 18 months and I prefer it that way now.I am used to paying cash and I dont need to answer to anyone.
I get my goods made in China now with no money down and no LC based on my word so goods are coming quicker because as soon as I am ready to pay it is on the ship the next day or so so everything is speeding up.I have had Chinese offer to send goods on credit to me but because of fluctuating dollar rates I dont really want to do that but may in the future if their offer still stands.
Strange isnt it that a person in China who i havent met will do business with me based only on the fact that they accept my word as gold yet here it is like I have leprosy.But like I said a week or two ago.
The banks client sells X commodity.He pays overdraft rent wages.
I have no overdraft no rent and no wages.
He lands it here for $X because he buys from the trading company in China and I buy it for $y which is $X-15% because I buy it from the factory.
He has to pay cash or LC (which costs) or a deposit before the goods are made so it is 8 weeks per container between paying and receiving.I get 2 shipments in the same time.He sells for $x plus his markup of 50-150%.I sell for $y plus 25%.Keep lending him cash though because he may need it very shortly.
You are probably a nice guy and I am probably a bastard but I can tell you know that I dont particularly care whether the banks lend or not because it is irrelevant at the moment.
I have no cards,no loans,no wages or rents.I am also too busy dumping goods at ridiculous prices to really care too much anymore about the banks or the issues we have discussed for several weeks.
All I know is that if I keep dumping vast lots of goods I can make a quid so that is what I do and when I make enough I am thinking of throwing some into an invoice factoring business.36% the banks charge.I believe that 18% would be enough.You never know it may be just like dumping tangibles.
So there is no need for us to argue and I probably wont be around for a while because I have some things to take care of so you have your opinion and I will have mine and we can leave it at that.gf
Lets see how spot on they are as time goes on.
Yes I have serious issues with banks.But I took 10 cents literally and turned it into a decent business that is growing.The first thing I sold out of bankruptcy I did not even own nor could afford to buy.I sold it got paid for it and used the buyers money to purchase the goods so I could deliver them.Literally 10 cents I had.Yet the banks dont recognise that and want to carry on with the prehistoric attitudes they have.They want to charge 36% pa to factor invoices yet have a spread of debtors to minimise risk.COME ON! Loan sharks charge less interest and take more risk.
Justify that if you can and then tell me why I shouldnt be crooked on them.
They are piranhas.What is this reverse mortgage?A way of fleecing old folk?
Offering higher credit card limits all the time to people who cant pay now?
The whole game is a rort.They havent got an ounce of morality between the lot of them and the more money I make the more contempt I have for them and the happier I am that they pissed me off so bad that I will never owe them a cent.gf
For weeks you have been telling me what nice people banks are.
And the fact this couple is a nice couple is totally irrelevant.I am the biggest mongrel in the world yet that should not matter when it comes to business.You still wnat to try to tell me banks are rational?
gf
As for references from a shipping company, what purpose does this serve? You have to pay these guys or you don’t get your stock off the wharf. They don’t sell you your products, they just transport it. Where are the references from your suppliers?
Untrue.I have a 30 day account and can take 30 days to pay although I always pay on day 1.
My wife cn borrow as much as the banks try to lend her but rest assured that if they think that she owns half of what I have for the purposes of settling her debts please think again.That is my company and it will not settle debts for others.
You say that the bank will do business with me.Apparently you know something I dont because I can assure you I will not do business with the banks unless it is on my terms and as I suspect the banks will not do business on my terms then we cannot do business.They have had their chance.It is now gone.I dont want to borrow off banks anymore after seeing their attitude.gf
Veteran Forum Contributor [3180 posts]
Posted 29/05/2005, 18:54:41You are being totally irrational.
A company costs a few hundred dollars to set up which makes the actual company pretty worthless. It is the trade and assets of the company that has value.
The compan has trade figures and assets.It also has credit references from a very large international shipping company .Yet my wife who has no income apart from what I give here,no assets apart from $8000 in the bank has just been sent a form to upgrade her cc to a gold card.
Now I have on average now a million bucks a year (probably closer to 1.5 at this stage)going through my account,no debt,and very few overheads and working on a decent margin and can get no help from anyone to expand.Yet someone who depends on me for a living and has no assets and no income apart from me gets offered a gold credit card.They are alienating me.
As I said we cannot do business.The offer of a gold card to my wife is the last straw.they have completely alienated me.
By the way I can import from USA.It isnt all that expensive and taxes are not high.Changes to the vehicle are the only real extra.gf
Well obviously if you have an account with them they would know how much is in the account.So saying I must be doing business with them is silly.
Why do I go on about it?It is a matter of principle and because I could grow my business faster with more cash on hand.
Anyway I dont want to argue with you but I have decided now that if banks lend me money now or in the future it MUST be on my terms.I presume they will want them on THEIR terms so it appears we cannot do business.
For example I want to lease a trayback.Maza bravo or similar.They want me to fill out a form giving my pwersonal details and as the company is leasing it I dont think my details are relevant.
I am not desperate for a vehicle so I dont lease it.They lose out on the interest I dont get a new vehicle the car dealer doesnt sell a new vehicle.But I dont need a vehicle.I just thought it would be nice to have one so I have decided to import a vehicle from USA for no other reason then to NOT allow the finance company or bank or car dealer to profit from my business.I would prefer to give my money to a USA based business then a business here that will not do business with me.
gf
Veteran Forum Contributor [3128 posts]
Posted 17/05/2005, 12:18:38Originally posted by upandcoming:
… I also blaim the banks and finance companies.Did anyone twist your arm or was that letter they sent you scary enough to make you think that if you did not accept the offer of finance each time, something bad would happen to you?
It explains a lot about your attitude regarding banks.
Robert Bou-Hamdan
Mortgage Adviser
I didnt think you had too many brains but now I am certain.If you had read what I wrote you would understand.You are so far up the banks it is a joke.They had a responsibility not to keep lending and while I said I blame myself which I do, I also blame the banks who are entitled to take some responsibility.
As I also said,I am not desperate for finance off anyone but they are too stupid to realize that people change and circumstances change.I am buying my first property(first since bankruptcy) soon for cash.
However I am not a fool.When the bank manager now goes out of his way to speak to me and make a lighthearted joke with me and the loans officer does the same I am fairly certain that the reason for their change towards me is not because I am a good looking bloke but because my bank account is starting to explode.
They can keep their cash as I will never do business with a bank.I will pay cash or go without.
You though need to wake up and rethink your attitudes.gf
The Mortgage Adviser
Veteran Forum Contributor [2828 posts]
Posted 14/05/2005, 10:15:36What was your reason for no income?
I had a dead end job with no prospects.Banks kept throwing cards and loans at me.I was young and had little commonsense and after years of paying them off and paying interest on interest I had enough and just gave up the fight and went on the dole.In reality i probably paid the principal off 10 times over but the fees charges and interest just kept mounting.While I blame myself I also blaim the banks and finance companies.It will never happen again.
Now I have things in order and took a punt on something that paid off .Bankruptcy for me was the right thing to do at the time.gf
BigJobs
Still finding my forum feet [18 posts]
Posted 15/05/2005, 09:59:24
Big Jobs your inclination is incorrect as far as I am concerned.My company owns no property and neither do I.Turnover is increasing,I have never bounced a cheque nor gone over the limit.My assets are the goods in stock,invoiced customers and the way I operate the company.It is not enough for the bank who told me that an unsecured overdraft must be guaranteed by the director with property.They have a different idea of unsecured than I do and yet tonight imagine my dismay when i find they are giving $100,000 to the winner of my restuarant rules.Loyalty begets loyalty.I have been loyal but they are not loyal.I have got my own cash plus private finance and the 18 months I have been with anz has been wasted.They tell me I have a great credit rating with them but that is worthless also.So this week i will change banks.The next bank will be no different but I cannot do business with anz so I may as well change.gf
You must read all of the findings not just one piece.And in that case the woman also had a case for unjust enrichment anyway.
However the moral is that nobody should ever sign contracts with essence clauses unless they are certain they wont get in a problem.gf
Yes Robert but I am not in the property management business either.
As I said it is now irrelevant what the banks require.My company cannot do business with banks.
gf
I went bankrupt.
I was bankrupt for 3 years.I repaid none of the debts nor was I asked to repay any of the debts.I was bankrupt because I had debts and no income.Now I have income and no debts.
gf
ANZ do not give ratings to companies. A small and relatively new company is only as strong as the Directors behind it. You need at least two years full company tax returns showing healthy profits to be able to borrow solely on the company figures.
Robert I can only say what the ANZ business lending person said to me and that is what he said,that the company,(whose account it is) had a AAA+ credit rating with them.Another tip: Try providing the lender what they ask for instead of “arguing black and blue” with them. It really gets you nowhere.
I went and saw a friend of mine and told him how they were still going on and on.He said”How can banks hold property so dear as collateral when they are selling their own.They want turnover and cash not property.How can a good credit rating be ana asset if you can not use it to borrow.
Lastly why would I want to borrow off banks and pay interest if he will give it to interest free.
I have not wanted to accept it from a friend but have come to an agreement that I will take $50000-100,000 off him and half the profit I will give to his daughter.So all around it looks like working out.gf
Robert I am not asking to borrow money.The company is.The company has a AAA+ credit rating according to ANZ.The company is an independant legal entity.It is cashflow positive and has nil debt with increasing turnover.
I have argued black and blue with banks and now you.I no longer want or need bank credit.
A friend of mine has repeatedly told me not to get money from banks and to get it from him if I need it.I did not like that idea as I wanted to be independant.He today told me again that I should forget the banks and offered me what I want.
I said I would only take it if he accepted half the profit I make from it.His reply?”I just paid my tax have you ever seen a bill that big?I dont want a bigger one next year.
So I will get it from him instead.
Thanks for all your help.gf
The Mortgage Adviser
Veteran Forum Contributor [2692 posts]
Posted 09/05/2005, 19:26:22Just to make you feel comfortable, even if it settles a few days late, it won’t be overly expensive as long as you don’t have any time is of the essence clauses or other wierd clauses in the contract.
Stick to mortgage advice because your legal advice is wrong.Even if there is a “time is of the essence” clause it is not a big deal.they have to give reasonable notice that they are going to rely upon it.Have a read of “Legione and hateley”
gf
I know where you are coming from.
I built my company over 18 months of hard work.I am still building it.Turnover is good.In the first 2 months of the year $218,000.00 went through the account.I have never bounced a cheque nor gone over not even for 5 cents.
I have no property but thought surely the bank would give me a hearing.last night I was told that unless I as a director have property they will not lend to me.So i rang this morning and the anz business bloke said and I quote,”I have spoken to you before about 6 monhs ago.I have been watching your account and I can tell you that you have an excellent credit rating with this bank.”So i said “so a loan will be no problem?” And he replied”no we cannot lend you money because you have no property as security.”Now 2 things.Firstly why did he think I should not change banks?He says that I will need to rebuild my credit rating with a new bank.But what good is a credit rating if I cant get credit?secondly why are the banks all selling their own properties and leasing them back if property is so important for collateral?
It isnt just the anz.It is every financial institution in Australia.
In a way they are doing me a favour as they dont own me because I owe them nothing.gf
You can’t do everything yourself. You will grow to a point where you need staff or stop growing. You also need to store stock so rent will also be required. Again, a business plan would have identified this.
Basically, I am trying to convince you to either do a business plan or pay for one to be done for you and you may be pleasantly surprised of the result.
What makes you think i do not have a business plan and why do you assume I need staff?
If I do have staff they will need an ABN because I have no intention of paying wages.They can work on contract or not work for me.And why do you assume I need a store to keep stock?
Shops cost rent,staff costs wages.
If i dont pay those I can sell cheaper than the bloke who does.gf
You seem to offer a lot of guarantees. How can you be certain of competitors going under? What is to stop them from commencing a new division to compete with your business just like the major supermarkets did with online shopping?
They certainly have the buying power, contacts and skill to do so very quickly should they feel threatened. I am certain they have business plans that identify any threat from online vendors and their tactics to stem this threat. That is where business plans are invaluable
Then why dont they do it?
As for starting a business and undecutting me then why dont you try.Because I don’t want to.
Then why suggest you can?
I don’t think I missed the point at all. You were offered finance that you were unhappy with. You did not make a distinction between factoring and getting a different loan as far as I read. Maybe it is the hour.You just stated again that you were offered “it” if you complied with their demands. I don’t know if you know this, but everyone who gets a loan regardless of their situation must comply with the demands of the lender to obtain approval. Why shouldn’t you?
I was offered it provided I changed my business plan and increased the number of people I invoiced.
I certainly am not going to change my direction so a factoring company who wants to be paid 36% can decide he has less risk.I would rather do what i am doing.
You just stated again that you were offered “it” if you complied with their demands. I don’t know if you know this, but everyone who gets a loan regardless of their situation must comply with the demands of the lender to obtain approval. Why shouldn’t you?
Because I am not desperate for finance so i can afford to tell them to take a hike.
But when they ring me at my home at 7 at night I suspect they want to lend to me.There have lending policy and I have borrowing policy.these clash.So the result is I will not borrow and they wont lend.No good arguing about it.
…I dont have many warranty issues.I consider this a weakness which a business plan would have identified. I would prefer paying a little more for something to receive a warranty backed by an established organisation.
Again you seem to have very little understanding.I never said I dont give warranty.What i said is I have very little warranty issues.
I dont intend to argue with you anymore but I stand by my statement that banks are dinosaurs.Gerry harvey wants the Chinese to float the RMB.WHY????He made a billion dollars with a fixed RMB.He wants it because there are people like me and they are worried.Traditional wholesalers in sydney are falling over every week.retailers are much better.Internet sales are up.Does he think a floated RMB will matter?
All his stores are franchises.It is not easy for them to go on the internet because they are not one store or business.
So you keep thinking you are right and I will keep doing what I am doing.I doubt i will ever borrow money and you can keep lending it to the drones that comply with your rules.
gf
You told us you were already offered 36% finance. That means you can get it if you want to pay that much. Regarding your refusal to do a business plan, there is a very old saying… “Business do not plan to fail, they fail to plan!?
Seeing you need them to help you and they do not need you, I think you should be a little flexible in meeting their requests to approve your application.
I think you miss the point and I dont think you understand to be honest.I wasnt offered factoring.I was offered it if I comply with their demands.
AndI dont need them.While they dont need me I certainly dont need them.I could just grow quicker with help.
As for starting a business and undecutting me then why dont you try.
people are going broke left right and centre because they dont understand the game.I started with nothing at a time when exchange rates were unfavourable to importers and I am growing.I will survive and I guarantee that in a few years the ones the banks are helping,ie traditional businesses will go under.
I just bought a container of chairs that sell for $1200 in the stores and sold the lot for $250 each and made a good margin.
In 6 months I will start auctions in my home town.The mainstream businesses cannot compete and although I am not silly enouhgh to think i will run them out of business I will beat I hurt them.let the banks lend to them,but they may not be in business in a couple of years so they may not be in a position to borrow.
I can sell musical instruments at a quarter of retail.I have sold more musical instruments in a year than most music shops sell in 12 months and they are established.I can split containers because I have a good network OS and I dont have many warranty issues.
My business is based on good fundamentals but noonewill look at it because of their policy.So I need to turn cash quick to survive.So that is what I do and the ultimate loser is the competitor who employs staff and pays rent.
I dont need the banks.I would grow faster with help but I will grow just the same.
And while I am growing I will more than likely help some other business to the wall .gf
