Hello all,
I completed a management buyout in May 2004 of a company that I have worked for since June 2000. I had to borrow heavily to do this, which left me 1k in the red each month; my savings have now depleted.
The company was sold last month for three times the initial purchase price, leaving me with a multi-million pound sum. 50% of that sum has been re-invested into the company in the form of an earn-out.
The other 50% has been paid to me in the form of bank guaranteed loan notes, which cannot be redeemed until Jun 2005.
I have no cash at present. A well known private bank are keen to lend against the loan notes but are having difficulty with their legal dept as the supporting letter of credit is in my name and not transferrable, so they cannot take it as security thus far.
I need to borrow 20k over 6 months in order just to live. I have tried many banks but all are uninterested and want to see 6 months worth of bank statements, etc, etc. Not a problem - but as I have made clear to them, my outgoings currently exceed my income by 1k per month. They lose interest after hearing this! They just don't seem to realise that I'm showing them a
7 figure loan note issued by a FTSE 100 company and backed up with an irrovocable letter of credit; who cares about my credit cards and loans?So in summary, I need 20k over 6 months whereby the lender wouldn't care that the proceeds of the 20k loan would actually go towards it's own payment for the 6 months. After 6 months, the loan notes will be redeemed, I will have plenty of cash and clear the loan.
The loan notes are bank guaranteed with an irrovokable letter of credit issued by Natwest. Even Natwest wouldn't give me 20k loan today though!
As things stand, I cannot meet my mortgage payments this month and I don't even have a christmas tree! Very depressing indeed. Does anyone know of a lender or service that might help me?
Paul