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Financial Challenge
My company is beeing operating for 15 months now and has a soft loan of 2.1m from sponsors of SLP project. Our turnover is currently 2.2m. We never reached a break even point from 1st month and we are now sitting at a net loss of 800 000 ofwhich 500 000 is owed to creditors. How do we avoid company closure for benefit of shareholders(communities)
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So you received start-up capital of 2.1mil, operated for 15months, turned over 2.2mil and made a net loss of 0.8 mil. How come your company losses are 36.5% of your turnover. This is a staggering set of figures, I'm not a lawyer but the destiny of this company is probably out of your hands, I suspect one of your creditors will apply for your company to be liquidated very shortly.
Why are the losses so high? Was this a long term venture that requires more time to become profitably? I don't see how a business with 2.1 mil turnover in 15 months could possibly have run at such a loss.
Welcome to TFSA by the way ATM.
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Thanks Andy
This was a long term venture aimed at job creation and empowering communities.
The 15 months was mentorship program and participating directors/shareholders are not competent business people or maybe this was just another money scam in the name of helping previously disadvantaged.Comment
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I agree with Andy - it's hard to advise without further information.
One question that struck me - How much capital did the shareholders put in?Participation is voluntary.
Alcocks Electrical Services | Alcocks Pest Control & Entomological Services | Alcocks Hygiene ServicesComment
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