361. 60 days late on SBA, 30 days late on rent, goal is survive another 65 days

Transcript

Speaker 1 0:01

Good morning . So today there's a little bit of traction with the bank and lenders wanting to get paid . We'll just say that . So I got a call yesterday from oh gosh , where was it Got a call from one of the . So my bank , my bank , both underwrote the loan as well as they are servicing the loan . So they , they created the loan when I got the loan and now , like , I make my monthly payment to the same bank . So

Bank starts making collection calls

Speaker 1 0:32

there was no broker involved , so it's the same entity . But he just some guy from the business , from the bank said hey , nathan , this is so-and-so , give me a call at your earliest convenience , or my business banker could me call your earliest convenience , something of that level . So very , very easy going . They're still in collaboration mode .

Speaker 1 0:53

I called my go-to banker like four months ago and said hey , man , like I don't have the cash to do this , I things are going to start slowing down . Like what are my options ? And I think I did an episode for that . I can't remember but the gist of it . We said well , you don't want to declare bankruptcy . If you do that , you'll never get a . Like he literally said it'll be very difficult to ever get a business loan again . And he used the word again almost like my life was over at 33 years old and I've still got another 80 years of runway to go . Over at 33 years old and I've still got another 80 years of runway to go . So I know , right then , and there I'm not going to be able to listen to any of the rest of his input because he's jaded by fear and putting that fear onto me . So that's not , that's a no go . I said no , that's not true . Um , and then what else happened ?

Weighing bankruptcy options

Speaker 1 1:38

Uh , shoot , I'm supposed to turn left there . I was supposed to turn left there . Um , hmm , how am I gonna do this ? Uh , so apologies about that . So I know my business banker isn't gonna be very helpful , because if he's being truthful then he doesn't know the right things , and if he's being deceptive then I know I can't trust him . So , either way , I know he's not a good source of information .

Speaker 1 2:03

So yesterday I got a call from a random person representing the bank saying hey , let's talk . And so we're talking . I'll just ignore him for now , because I need another 60 days of runway , the way I see it as of today , and these episodes aren't going to get released until everything is said and done , so no worries on that , but the bank is currently 60 days behind on payments . So they were supposed to get paid 60 days ago , didn't pay that . Then they were supposed to get paid again 30 days ago . Is that the timeline ? I can't remember now , and so ,

The 60-day runway strategy

Speaker 1 2:39

anyhow , I'm behind on the bank . I'm only 30 days behind on the rent , and so they're the ones that I'm more scared of , because if the bank shuts it down , then you're guaranteed everything is done . If the landlord shuts you down , it's likely that things are done , and so , either way , all I know is that there's no reason to be afraid , and so right now I'm just playing the who can I delay ? Game , and so I'm scheduled to meet with my attorney on my bankruptcy situation this Friday .

Speaker 1 3:07

They get dibs on my time If I ignore everyone else . I mean , it doesn't , it buys me time . If I , if I'm highly engaged and communicating and interactive , then I'll either be gaslighting them , and then they'll just get fed up with me , or they'll . If I am straight up , like hey , here's exactly how many days behind I am , here's my checking account , here's how much I'm going to be behind on sales every month , and I give them , like all of my behind the scenes information . They'll just see yeah , this thing is not . It does nothing to let the business stay open . They may as well just close the account now , and so that expedites destruction , and that's my assessment , that's my assumption . I'm sure someone else would push back on that . But all that to say , based on those options and outcomes , it's best to not engage on that front , and so my goal is to make it another .

Speaker 1 3:59

What day are we at ? October 9th , my goal is to make it another 65 days and then close things from there , and so anything that impedes that I should avoid . So the outcome is going to be the same and the doors are going to be closing . There's going to be a bankruptcy , it's due to a business failure . Uh , there's no benefit to trying to .

Speaker 1 4:20

Anyhow , I'm blabbering far too much . Hopefully , this episode can be shortened up when the book comes out , which , yes , I do want to turn this all into a book someday , and right now we're just going to play that game . So , uh , yeah , we'll call it there . So I'm not stressed . I'd be stressed if there was a way to save the business versus not save the business . The business

Business closure is inevitable

Speaker 1 4:44

is not savable . That is an undeniable scenario here , and so I'm going to engage and interact as much as I possibly can . At the end of the day , I'm going to care for the members , I'm going to take care of my personal future and I'm not going to lie to anyone and I'm not going to hurt anyone along the way . And unfortunately , my craters are going to get dinged from this , and that's unfortunate , as you can tell from my voice . So I'm going to just pause there . I've made my point . We're going to go enjoy life . We're going to go be purposeful and live to fight another day . That's where we're at at . That's where we're going . That's rock and roll .