I wondered if anyone had an opinion on what i should do next. It?s difficult for me because i have no impartial advice to listen to so i thought i?d try out the forum as a very of releasing the pressure a bit.

We operate in rural Spain and have done for nearly three years. s with most companies year one we made a loss year two breakeven and this year projected a decent profit.

We signed contracts late last year with a number of large companies to supply services etc to them and we thought we had spread our risk from individual sales which looked to be slowing down and continuing to do so this year by getting corporate work.

Recognising that we would have a cash short fall during the first 4 months of the year until the contracts came on line we aproached our bank with a business plan and our requiements for the year. We should have been worried when the bank manager said it was the first time he had seen a business plan from anyone!

Anyway we were promised an answer within 2 weeks and as we had a perfect history with them since day one in Spain we happy that things were going according to plan.

Four months after applying the bank manager is gone and we are told that there is no record on the system of a loan application despite going in daily and obviously frantic as the bills and mortgage payments were being missed the manager kept saying come in in a couple of days to sign the paperwork at the notary. Now he?s gone the bank say it?s my word against his and guess what they believe him and are now repossesing the family home.

Also our first big corporate customer having done lot?s of work for did?nt pay his bill in April owing us 154k. The solicitor says it?s an open and shut case but will take up to 2 years to be heard and cost in excess of 10k to fight with no guarantee at the end.

Our other corporate customers have delayed there orders saying the economic downturn has effected their business they are now not wanting anything for at least 9 months.

So obviously the plan has gone to pot and if we survive this year we will if we are incredibly lucky breakeven.

We have trade debts of 40k now plus the mortgage payments and ironicaly the only thing keeping us going is the smal individual orders.We have a strong order book for later in the year but the question now is do we want the hassle and heartache of carrying on or do we just let go and admit defeat.

It?s difficult as all our previous businesses have been very succesful but with very little money coming in and having against my wishes had the company registered to the home address we are getting daily harrassing visits from trade creditors who as we are English think they can throw there weight around and threaten us with violence etc.

We could trade our way out of this if there is a way of coming to agreements with all the creditors and the bank but our accountant is useless and appears to not be able to suggest a way forward. His advice is that i am personally liable for the debts but that?s not how my understanding of an SL company is.The bank have ignored our official complaint and also our offers of payment.

So in the words of the song ?should istay or should i go?

Nusbur

Your greatest problem is not what to do with your SL. it?s to shake off the siege mentality and regain your confidence.Although you don?t say where about in Spain and you don?t say what your products of services are business is pretty much business anywhere.
Stop blaming the banks , banks are the same throughout the world they are not there to help you.
Stop blaming the corporate customer who owes you 154k . Who would just love to get away with it if you go down the tubes or pay the receiver in 5 years time.
Never mind the solicitor and his open and shut case it?s easier for him to talk he just wants to get his hands on your 10k.
Of course your other corporate customers are delaying orders business is down everywhere and will remain so for at least another year.

That?s all the negative stuff out of the way, you have to look at the positive , you say you have a strong order book, what are you doing to generate business tomorrow, today , right now. You can save your business if you focus on it , tell yourself that you are not going to sacrifice your hard earned resources and you are not walking away. Where?s the spirit that got you started in the first place, a Brit in the middle of Spain, got from nowhere to running a successful business in 2 years means you have what it takes, you have done it once, do it again. All it requires is serious negotiating with the bank , your mortgage company and the corporate customer with the 154k. do they want their name tarnished by court proceedings. Nobody wants to repossess a house in the present climate, you need to talk to these people, plead where necessary and be firm where needed. Remember it?s your business , it?s your family , it?s your home, fight for it for Christ sake. Best of luck.

Spearcoil