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  • #992999
    nicole538
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    Hi. I have a start up business & breeds different kinds of insects..educational insect kits for schools etc. I received a NAB micro enterprise loan of around $4500 a few months back which was great & has really helped my business. The loan was used to buy stock and necessary materials..unfortunately i am now running out of money again to buy more stock. Orders coming in & having to turn down customers on a daily basis. I am considering to ask for a further amount of loan money from NAB. The business is just managing to cover my bills at present….still receiving a part Centrelink payment. Anyone has received the loan who can assist me or has other advice ?

    Thanks

    #1189258
    NickKaro
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    Hi Nicole

    Have you considered requesting an up-front amount from your customers – if they are placing orders that have to be turned down due to stock issues, I would’ve thought a cash injection from the potential customer should at least partly solve your problem.

    Alternatively, how long between purchasing the stock and delivering to the customer/receiving funds. A short term overdraft or credit card with a 55 day interest free period may also be considered.

    Regards
    Nick

    #1189259
    nicole538
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    Thanks Nick…i will consider the options you have mentioned. A credit card sounds good. Being unemployed however might be difficult…i have only a business payments card with 200.00 credit limit.

    I think one possible reason for my cashflow problem is that I need to breed up sufficient number of insects for sale. It takes a few weeks for them to reach correct size for sale. In meantime I cannot meet my orders. Having the funds to scale up my operation may be the problem ?? Any advice is great…thank you.

    #1189260
    affgar
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    Hi, Sounds like you are getting quite creative in your business adventure.
    I would be very cautious about getting a credit card …. If you have cash flow problems that could quickly bury you. Can you buy products on account terms, so you have 30 or more days to pay? Though Nick is right that if you only need to extend your expense payments to make things work then adding a credit card to account terms could give you a buffer on outgoings.

    I would really look at how your business is functioning & analyse your cash flow & business model requirements.
    Get out the paper & pen so to speak(computer or whatever), start drafting out what is happening with your business funds & write out your potential cash flow scenarios, expenses & how many customers you need to meet your day to day operation.

    Don’t be in denial, be very critical with you business study. This does not mean lose your optimism… But if things can’t possibly work the way things are going currently you need to understand why, or what you can do to change things.

    Can you approach customers who have larger, stable needs for your products … you may be able to get in the door cheaply & that fund your running expenses & overheads while your are upscaling your operation to include more customers.

    Really look at where you costs are … Can you reduce those?
    To me it sounds like you are best to improve efficiency of operation & understanding, rather than try to upscale too quickly. But these are things you have to make judgement calls on.

    Could you add to your range of products so that your customers could buy a few things at once from you, rather than just relying on one product?

    Good luck!

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