Last Friday of the month. Always a pain as it's when businesses run out of money.
Today's twit called up and said he can't pay the wages for 30 odd staff.
We told him in November that he was running out of money and needed to do something, like arrange a new loan, mortgage, sale and leaseback, whatever. We told him again in December and at the beginning of January.
Come today and the BACs are bouncing and he calls in to say can we extend the loans?
No. We need to write a paper to go to credit and get any extra lending approved (don't always need to but this is so far out of formula that we have to).
He said, well you knew there was going to be a problem in November so why didn't you do something - putting the blame on us! We did do something - we told him he needed to refinance his business - in November, December and January - but now it's our fault!!!
I could have prepared a credit paper on spec, but why should I risk 3 to 5 days when there was no guarantee that he would need it (he could have got the money elsewhere) and I would be crucified by our useless management for wasting the time.
So I give him the number for dodgy loan co who will charge him 15% for a months loan but it will give him time to re-mortgage his industrial unit.
He borrowed £100k from Dodgy loan co. £96k was paid in to his account - they took £4k in arrangement fees! £115k is repayable in 31 days time and of course another payday is due between now and the repayment.
I call up an insolvency practitioner. They will charge him £10k for an IBR (independent business review) to see if it's a suitable for extra lending.
Being a tit is expensive.
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