With the exception of a trip to London to meet a visiting South African factoring business it has been an exceptionally quiet and dull week.
A couple of new prospective clients emerged this week, via the web, but the smallest level of research reveals an initially undisclosed history of failed businesses. Whilst history is not necessarily a guide to future performance it can be a pretty good indicator and in one of the instances the creditor shortfall in a couple of the previously failed businesses was worryingly high.
I suspect these enquiries will go nowhere as prospective lenders will uncover the same historical patterns and decline any facility. This of course does not mean that funding is not available for SME’s but that funders, correctly, decline any involvement where they believe a ‘won’t pay’ attitude exists.
Invoice financiers over the years have been vulnerable to the less scrupulous but are helped by an ever improving information base enabling and assisting with informed decision making.
One good, valid enquiry this week sees ongoing discussions with a specialist cross border supplier finance business, the prospective client, based in the UK buys from one country selling to another without actually ever seeing the product; if it comes off it will be a very interesting one on which to report.
Away, from work, but impacting on the economic fortunes, particularly the stock markets is the ongoing Greek economic crisis. if nothing else it demonstrates that comparisons with personal or business debt cannot be applied to sovereign debt. Sanctions available to personal or business lenders are not applicable so the only solution is via negotiation. Quite how Greece managed to be compliant with fiscal requirements to join the eurozone is a mystery! This will rumble on for years…………..