Is there absolutely no help for me anywhere?

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Jackhalil

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Post by Jackhalil » Mon Jul 26, 2010 3:03 pm
I'm a sole trader, and was when i entered my IVA (along with my wife). My question, is it true that I'm not allowed any sort of credit, even relating to my business. I'm finding it extremely difficult to run my business, as my cash flow is always depleted due to having to pay up front for all my goods, tools etc.. Is there absolutely no help for me anywhere? Our IVA had to be extended by 1 year due to my wife giving birth to our second child, which caused us immense stress and worry. We have two years left to run now, and quite honestly we're wishing it would end tomorrow.
 
 

Shining

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Post by Shining » Mon Jul 26, 2010 3:31 pm
Hi and welcome to the forum, I know with the permission of your IP maybe you can get a small credit limit to tide your business over maybe?

Always run this by your IP though and one of our professionals will be along soon to confirm.

In my opinion you need to keep your business running to fund your IVA payment. x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
 
 

Adam Davies

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Post by Adam Davies » Mon Jul 26, 2010 3:58 pm
Hi
Usual business terms of 30 days should be fine but run it by your IP. Have you considered asking for a payment break to help you purchase stock ?
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Andam Davies
 
 

MelanieGiles

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Post by MelanieGiles » Mon Jul 26, 2010 10:28 pm
What sort of business are you in? In general, trading IVAs ought to have an element of credit built into the cashflow, and there is no problem with this as long as it is paid off under normal trading terms.

A payment break, as suggested by Andy, does seem to be a good way of capitalising the business for the future.
Regards, Melanie Giles, Insolvency Practitioner
 
 

Jackhalil

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Post by Jackhalil » Wed Jul 28, 2010 9:08 pm
Thanks to all for your responses, I'll contact my IP. Thanks and regards
Jack..
 
 

Adam Davies

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Post by Adam Davies » Wed Jul 28, 2010 9:09 pm
Hi
Can you please let us know what sort of response you receive from your IP
Regards
Andam Davies
 
 

Jackhalil

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Post by Jackhalil » Thu Jul 29, 2010 2:44 pm
Hi Andy, I'll let you know as i do. Apologies to all, but I'm new to posting here and haven't really given you enough info. I am a sole trader as mentioned previous, I'm in the fire and security business (industrial & commercial). This is where my problems start, as I have to purchase equipment up front (not allowed credit facilities-I assume)?. As you may be aware, this equipment doesn't come cheap, some of my customers are good to me and pay within two weeks of completed works. Others are 45-60 days, i don't really want to take these customers on as they cause me a lot of stress and worry over payments, but needs must and I have a family to support. I genuinely can never seem to get in front, i very rarely have any spare funds available to pay for goods. The only way i can raise funds is to be completely honest with my mortgage supplier (Northern Rock), and i can only say that they are extremely understanding and helpful, not a cross word to say about them. But, at the end of it all I end up exactly where i started due to having to pay two months mortgage. But without this help my family and I would now be homeless and Bankrupt.

I'm with DFD formerly Clearstart, and i can't say the same for them, if you like call centres and speaking to young people, who to be fair are unconcerned about the consequences due to changes in circumstance, they're for you. I have been through grievance procedures during my wife's pregnancy and subsequent maternity leave (which was barely 4 months). I applied for reduced payments and agreed verbally (my biggest mistake). They never put anything in writing to me, not until i threatened to go to the media.I rang, wrote letters you name it, i did it. We obviously had reduced income, so i was just following they're procedure of informing them with detailed financial information. Quite honestly, they're rubbish and rue the day that they took over Clearstart, as i never had any trouble with them. Got involved with they're insolvency director, and got fobbed off, quite simply because it's unregulated, i was Bullied and threatened with non compliance and failure if i didn't extend the term. The outcome, an extra year on my IVA, I'm still seething over it. I can't give up now though as my wife and i have been in this since Sept 2006, my wife and my lovely kids are the only people in my life that keep me going, if it wasn't for them I'd have given up by now. Anyway, enough ramblings from me, thanks again to all will advise of outcome. Regards Jack
 
 

Michael Peoples

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Post by Michael Peoples » Thu Jul 29, 2010 3:09 pm
It may be worth having a discussion with your bank manager or is there anywhere else that you could source credit facilties?

Credit is allowed in an IVA with permission from your IP and your circumstances do seem to fit such a case. Speak to your IP and if the bank manager is prepared to lend your IP may send a letter of authorisation.

It may be worth contacting Declan from DFD who posts here and his details are in the expert's section. He has helped a number of DFD clients.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
http://www.mccambridgeduffy.com
If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
 
 

MelanieGiles

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Post by MelanieGiles » Fri Jul 30, 2010 12:50 am
It sounds to me that your trading cashflows used in the IVA originally were flawed, in that they did not provide for sufficient working capital to ensure the business could trade under usual terms with suppliers.

I would suggest a reworking of this, and if necessary a couple of missed payments to get yourself back on track.
Regards, Melanie Giles, Insolvency Practitioner
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