Originally posted by upandcoming:

I was bankrupt (just ending)18 months ago

What is to stop you going bankrupt again? The bank might be concerned that if you do, they lose everything. I am amazed that they made any offer at all for unsecured credit. This type of credit is usually the hardest to get (excluding credit cards).

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I have very little chance of going broke because of my business model and the way I am running it.

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At present I have no debt and cash in the bank.Yet do you think I can get finance?

Yes I know you can get finance. It comes down to how much you are willing to pay and its purpose whether you take it or not.

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Well I cannot get finance.Maybe because I am of the opinion that my figures speak for themselves.I certainly will not draw up a business plan .So i suppose it is a battle of wills.I could pay 20% and survive.
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I wanted to invoice factor but the dinosaurs want 36%p.a AND have a speread of debtors to minimise risk.The hide of them!!!

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I wanted to invoice factor but the dinosaurs want 36%p.a AND have a speread of debtors to minimise risk.The hide of them!!!

They would be taking on substantial risk. The interest rate is reflective of the risk and your credit history.

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RISK?That is why they are charging 36%.The problem is they want to minimise risk and still get 36%.If it was that risky why are there so many factoring companies?

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A guarantee is just someone stating they are willing to pay that the bank can chase. It is not something they can take and sell to recover their money. Secured credit requires taking a charge over a tangible item. A Director’s guarantee is only taken to enable the bank to chase the individual if they close down the company.

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So it isnt unsecured.

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Companies are in trouble because of the internet.I pay no rents,employ no staff,have no debt.I can sell what the others sell for a lot lot less.Hence turnover is increasing yet the dinosaurs cannot see that I am worthy of a loan or an overdraft.

I disagree. The internet is an invaluable tool for many companies. I believe companies that get into trouble do so mainly because of inadequate planning. Regarding your internet business, these are a dime a dozen and can disappear just as quick as they start up.

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Using the internet to sell household goods is a bit different.
I sell stuff for $800 that harvey norman sells for $2800 and I can make 40% clear .Who do you think will sell out of stock first?

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I dont care anymore.I was just having a rant.
I have no debt.I have a good lifestyle.If I did go broke I will owe noone anything.

I pay cash for everything I want.I pay cash for my stock.
I could grow it a lot quicker with finance but in 12 months I will move $250,000 worth of stock a month at 25%.I just cannot understand the attitude of the banks or other finance people.
But i wont budge either.I did it hard and now as far as I am concerned I may as well go it alone.

gf