EFFECTS OF THE CORONAVIRUS ON A SMALL BUSINESS ​DAY 3 (19/03/2020)

I will keep this short as I have a banging headache as today along side the normal orders and the increased orders we have had from the people who are sharing this blog and Facebook posts I tried to put some contingency in place in regards to cash flow and I spent exactly 3 hours and 52 minutes on the phone to the bank.

Contact Left has not unlike some business’s gone into free-fall with the effects of COVID-19 however we are as a business stock piling, we are stock piling materials for trade customers, a lot of our trade customers who manufacture we are their lifeline and we can’t let them down. We are stock piling packing materials, from a retail point of view we are stock piling any item we think will sell well during the Pandemic but if we have a number of days without sales our cash flow will dry up. Spending 10’s of thousands of pounds on hand sanitiser without anything back for it doesn’t help either. I have to have some fall back in regards to cash flow or at least know what we have access to so I called the bank.

After 40 minutes on hold I get through to a business advisor who first runs me through security questions I can’t answer, then when I eventually confirm who I am he asks me what I want, I said I want to know whats available from the government announcement on support for small businesses, they told me they had no direction and were hopefully getting some direction next week. So I asked what our overdraft limit was, I was told we don’t have an overdraft,( it’s worth noting we have never borrowed a penny or ever had any government grants since we have started) So I asked can I have one and was met by the response how much do you need, I explained I don’t need one it’s just this coronavirus thing has the potential to cripple us and I want to know about what’s available, turns out they can’t tell you this, you have to ask for an amount that you think you will need. I say how about £40000 overdraft, I am told point blank if it was up to him he would give it to Contact Left as we are such a good account, but he can’t as it needs to go through a specialist business advisor and as I have asked for more than than he can approve. I ask how much he can approve, he said £25000, I said that’s great I will have that, he says I am sorry can’t do that as you have asked for £40000 you need to speak to a specialist. You can only imagine the conversation as I say I don’t need anything right now, I have been on the phone for an hour just give me the approval for £25000 and I will be on my way, no joy I get transferred. On hold for an hour this time, call gets answered I am met with the same security questions that I fail to answer, this time I have to get on the other phone to my partner who helps me answer the next lot of questions, then when I have confirmed who I am, I get told that I have come through to an overflow so they can’t do anything either and I am put on hold for another advisor. Finally 2 hours 40 minutes later I get through to the Specialist business advisor and amazingly I answer the security questions on my own, I explain about the business and that I just need to know what I can have, the figure of £40000 comes up as that’s what I mentioned to the first advisor and for me to get that they say I have to look at putting some sort equity like my house up against it (Don’t think my house is worth that much anyway), I explain I don’t NEED anything, I just want something in place in case I can’t pay wages etc, I am run through a number of things like factor invoicing and other things that just take money off us, the conclusion is I can’t have anything. I then asked do you not let businesses have overdrafts and they said they do but not £40000 without equity etc, so I said can you not give me 20 grand then?To which the reply was you never asked for that. Guys my head felt like it was going to explode, eventually I was told I could have a £20000 overdraft at something like 9% which means for every £1000 we are into the overdraft we pay £0.27 a day in fees. During this call the banks computer crashed as the Bank of England dropped the interest rate, didn’t drop for me though. If I used the full overdraft it would cost me £1971 a year, I only want the damn thing so that if things get really bad I can pay the wages. Next I am told there is a £380 setup fee, I said I was told earlier that overdraft set up fees are free at the moment, I was then told that’s only to businesses that are suffering with the effects of coronavirus, my headache is getting horrendous at this point I feel like I am coming down with something myself. I then explain I have £20000 worth of product in the USA I can’t fly out as the airline charges have gone up, I am stood next to two 8 foot pallets of packing materials that I have panic bought, that I am worried sick of what happens if deliveries stop coming etc etc, in the end the fee are waived as it is deemed we are effected by the coronavirus. In all fairness the lady who spoke to me was great but they have their hands tied. 3 hours 52 minutes later Contact Left has an overdraft facility. It’s worth noting that the banks are being hounded by already failing companies (Pre COVID-19) that are trying to take advantage of anything that’s on offer.

We are so lucky with the team here at Contact Left, as I am on the phone they are doing their best to do what I would do and what is becoming apparent is the young (and older) are pulling together and making things happen, including not only quoting for new orders and ensuring the daily tasks are carried out but bringing in toilet roll, working extra hours and really stepping up the game, we had a member of the Emergency Services in today and were I would be speaking to them or trying to sell something the guys and gals are sorting it out without me.

One thing that came up today from a customer was why don’t we put are prices up for items that are fast selling now, although prices on hand sanitiser and some other products are rising due to the cost of plastic bottles for example, we will not under any circumstances raise our margin. I am writing this blog and looking at whatever products Contact Left can sell for the sole reason of being able to keep everybody employed! Not to make loads of money at this time. We will still be trading in 12 months and Contact Left with the support of our customers will hold our heads up high and hopefully get our loyal customers coming back again and again.

I have put the Hand Sanitiser into stock on the retail site, for everyone that is buying it please remember there is a 2 to 3 week lead time from date of purchase, we are only ordering and paying for the hand sanitiser as we get payed orders and I thank everyone of you that has bought today.

I was going to talk about the product we made this morning for the medical industry but I didn’t get any good pictures so havnt posted it on Facebook yet but will try for tomorrow, it’s great.

Those that think they are going to isolate and have a garden, think about fire starting kits you can do with the kids in the back garden, making nettle string, building dens, these are activities that will keep your kids and yourself busy. There is a real risk these days to just sit in front of the TV and mong out, there is so much you can do in the garden, even a camo net and some cam cream will keep kids and adults entertained for hours.

Thanks again everyone, the only reason Contact Left is holding its own on day 3 is the support you have given us sharing this blog and sending companies and customers to us. Please keep this up and let me know what you think of today’s NOT SO SHORT blog.Thanks and Stay Safe David