Snowsports Distribution financing

[SamDist]

Hello,

I'm stretching out here as I'm running out of ideas.

2years ago I set up a Distribution Company to take advantage of an opportunity a new Ski brand gave me. The opportunity was the rights for the UK, France and Switzerland for the best up and coming new Ski Brand.

Having taken a couple of years to establish ourselves and find the right sales reps we are now in a position to make a real go for it. the problem is now we are having to pay out for the stock for next winter - the order had to be made back in February - and we are still talking to shops trying to get orders in. this means the bank is skeptical about the return. They are saying that they can only provide against the security of my property which as things are going isn't as much as it should be.

I'l running out of time because of shipping dates for the stock which must be paid for in advance.

We will be taking orders over the next 5months however need to pay for the stock now. I'm looking into loans, invoice financing and anything else. however nothing is coming back. I've registered on private investor sites however have had no response.

Any ideas are very welcome!!!

Thanks in advance for your help.

Jon

[Ian J]

Originally Posted by SamDist

I'm looking into loans, invoice financing and anything else. however nothing is coming back.

I don't think that invoice finance will help you as that will only fund goods that have been sold and delivered. Funding for stock is one of the most difficult forms of finance to obtain but finance against firm customer order is possible but can be expensive as it isn't supposed to be for such a long term and you could possibly end up paying 2% per month on the amount borrowed

[M1ck]

You can try for unsecured personal lending (more than one person take out a loan if you need more than £25 K).
Failing that, as a last resort, you can go for secure lending, but if you go for a secured loan, they are pretty expensive as interest rate is slightly higher than the nortgages and although there is no legal and valuation costs, they usually load up 5% of the loan as a fee.You will also be putting your house at risk if things go wrong with the business)

Mick