I promised you the wisdom of my bank manager. It started with a 30 minute delay whilst my manager handled some customer crisis and then I proffered some advice on how my manager could rent out his villa in Cyprus.
I was advised that our record was pretty good as we’d never been overdrawn so I could get an overdraft to help our cash flow but I’d have to sign a short form guarantee. When I asked what this was I was told that it’s a type of gentleman’s agreement so I’m still none the wiser.
I do not want to sign a personal guarantee having already put nearly £80,000 into the business. Coming from a family of entrepreneurs I promised my partner I would not put our house on the line as my mother lost her house due to a business failure and I remember the distress that caused.
Then I asked about a loan and was told I would be wasting my time as the bank does not like travel businesses at the moment, given the recent collapse of XL and Freedom Direct.
So back to the drawing board and maybe more private equity but having just met a guy who said the bottom has fallen out of the private equity market and very respectable quoted companies have been destroyed by crazy leveraged buy outs- this does not seem to be an option. Other strategies are to join forces with other companies which looks the most appealing option right now….watch this space.