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How is the banking crisis affecting your business?

Are you the owner or director of a small or medium sized fashion or retail business? Or are you employed in the fashion sector? Drapers wants to know how the banking crisis is affecting you.

Has your bank withdrawn or reduced your overdraft? As a supplier are you struggling to get credit insurance on your customers? Has trade tumbled further in the last two weeks?

What are you doing to reduce these problems? Is there anything you can do to tackle the banking issues?

Drapers wants to hear about your experiences of the banking crisis. Please share your experiences with each other by using the comment box below. You can of course comment anonymously.

Please also vote in our banking crisis poll on the right of the screen.

Readers' comments (8)

  • A really large indie i know had their overdraft pulled with virtually no notice the other day. They are scrabbling around not knowing what to do or who to pay first or how to pay. It's shocking. It is a very good retailer and this should not be happening. I dont know how they will escape it unless they can renegotiate with the banks.

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  • As a small independent, I have received little to no support from my bank. I'm not able to increase my overdraft and really worried about how to get extra stock in the run up to Christmas. Over the last 6 months it feels like the banks just don't want to know-trade is suffering.

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  • Conversely to most, we have found that trade has increased dramatically within this past 2 weeks (we have an online PR Tool which helps fashion companies get press coverage). This has been a very pleasant surprise for us to say the least!

    From talking to these companies, we have found that many have dropped larger / high cost PR agencies but are then looking for low cost alternatives to get press coverage, so have come to us. Other smaller / lower cost PR agencies that we work with are also finding they are taking on more companies in these times too.

    In our experience, the credit crunch seems to be providing a platform for lower cost companies to get larger clients.

    I hope this feedback provides a little light in these miserable times,

    Nicola
    Nicola Snell
    Director - Image Loft
    www.imageloft.co.uk

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  • Banks are being really tight with their loans at the moment. As well as problems with meeting the day to day payments, it means everything else like marketing and staff training are being totally wiped out.

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  • Finacing our business has not yet been greatly affected by the banking crisis. How that will change over the coming months is as yet unknown. I would expect however our financing to become more expensive.

    The biggest issue that we are facing (which we expected to face) is a wholesale review by insurance providers to pull cover on clients. With independent retailers who we know well and have a good relationship with, we are not so concerned.
    With the larger multiple retailers however, this is causing us much discomfort. When your company is into multiple retailers and has no cover on large outstanding balances, sleep at night suddenly becomes very hard to come by.

    I will be interested to see if the goverment does anything to help this side of financing, by helping to maintain insurance lines as well as credit lines to small and medium businesses.

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  • Its the most worrying time I have had and I've been around a while, however, when the going gets tough the tough get going! My bank so far has not pulled my overdraft or business mortgage, if they do I am finished and so are all my employees plus the landlord of one of my shops. My overdraft is way too low for the size and turnover of my business, however there is no point in even requesting an increase as the answer will be no. The rate of borrowing went up for me last week and I am dreading submitting my end of year accounts as they will use the drop in profit to pull my business mortgage and overdraft facilities - what do I do then? Use the equity in my mortgage free house I have worked like a pig to pay off to keep the community at large employed while I take no wage? I am optimistic that it cannot get any worse and if we can trade through these times we will shine once again. (we hope)

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  • We are a small independant recruiter and the bank has reduced our overdraft and will not extend. We have the vacancies on so business has not been affected from the client side but we cannot find the people to fill our jobs. Ad response is down by 75% and everyone is too scared to move so we are not getting the usually number of candidates out for interview which results is us not getting the number of offers which means we arent making any money. On a personal level everyone I know has not been affected by the credit crunch yet unless they work in banking. I blame the media for scaremongering which is doing serious damage to everyone. If this doesnt turn around soon then we will not be able to carry on.

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  • We're a small independent in the north of England, we don't have a large overdraft or loans so we haven't had any problems with the banks. What we are finding is our customers are being more cautious. They are leaving it to the last minute to buy something and instead of taking two or three outfits, they're only taking one because they haven't the money. I don't think it is scaremongering by the media, we are in a recession but because we're a specialist shop I'm confident we can weather the storm.

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