So if I kept my company open I apply and get $40,000, bank it for two years, collect $800 interest, repay $30,000 in two years and go shopping for a $10,800 bike. Nice.
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Coronavirus
- Thread starter nobbie48
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So if I kept my company open I apply and get $40,000, bank it for two years, collect $800 interest, repay $30,000 in two years and go shopping for a $10,800 bike. Nice.
Assuming you had at least $20,000 in T4's last year. That is the clause that is keeping many small companies out of the program. They are filing T5's instead of T4's or hiring contractors and are therefore not eligible.
Example 1: A water pump manufacturer selling to a big box store gets abused product back and has to suck it up. They lose the account and volume goes down but profits remain the same. Nice.
Example 2: A small woodshop makes nice coffee tables and is approached by a big box store because they like his product. They retail in small stores for $500.00. Wholesale is $250.00.
Big box wants them for $175.00, six months to pay, no questions asked on returns, if they don't sell 100% credit on a bulk return. To meet the expected volume the woodshop has to invest six figures in shop expansion and new tooling.
FWIW always check out Ikea's clearance section.
Watched that happen in real time to someone that makes triple clamps and assorted bike parts. One of the big mailorder shops in the US made a bulk order for a batch of clamps to sell on their site. Invested in the aluminum stock to fill the order, machined all the parts, anodized them, then sent them the invoice. They sent him an email telling him the demand wasn't as strong as they anticipated and offered him 50 cents on the dollar.
That's the first place in the store anyone that has Ikea Hackers bookmarked goes.
Robbo
Well-known member
Except the $800 is taxable as interest income, and the $10K ... they’ll find some way/workaround to tax that too.
Still ahead in the end, but not the full $10.8K
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Just make sure you spend it on "legitimate" business expenses so you have a corresponding write off. If you have the room in your TFSA, pull it out of the company now, invest it in your TFSA, then put back in the company in two years. Tax-free income.
I think a lot of commercial landlords are just going to have to be realistic and work out something with distressed tennants to pay what they can, and hope the doors can reopen soon and move forward. Hopefully it's enough so that the landlords are at least making their bills as a result, but forego the profits for a month or two. I'm sure they can get their accountants to find a way to write off or soften the blow on that.
Reality is, if landlords want to play hardball they're going to be stuck with endless empty units in very short order when tennants just throw their hands up in the air and walk away. THAT is going to hurt the pocketbooks a lot more...and a strip mall with 50% or more of it's windows papered over doesn't look very good, either.
I'm not sure what malls are going to do. It seems the public health officials are finally realizing that most traditional retail with a traditional "single door in from outdoors" can be managed, but a mall situation where everyone is milling about in a closed environment, that's going to be a hard one.
Reality is, if landlords want to play hardball they're going to be stuck with endless empty units in very short order when tennants just throw their hands up in the air and walk away. THAT is going to hurt the pocketbooks a lot more...and a strip mall with 50% or more of it's windows papered over doesn't look very good, either.
I'm not sure what malls are going to do. It seems the public health officials are finally realizing that most traditional retail with a traditional "single door in from outdoors" can be managed, but a mall situation where everyone is milling about in a closed environment, that's going to be a hard one.
Realistically, retail=masks for the foreseeable future. Costco starts Monday and apparently grocery stores are starting too. Once everyone is masked and hand-sanitized at the door, things are reasonably safe. Not being able to try on clothes basically eliminates the upside to brick and mortar clothing stores though so they have more cost with little benefit so they are screwed.
Mad Mike
Well-known member
Hmmm, I'd call that a wishful small businessman who learned a tough lesson about risk management.
Two rules that all businesses should live by if they want to be around for a long time:
- Take risks and deals you can understand and manage.
- Never "bet the farm" on any single risk or deal.
Rule three. Dont deal with a$$holes. Lifes too short, there will be other opportunities.
I have heard stories of knob hill farms doing crap like this back in the day. You show up with your truck of watermelons as requested and they say demand is down and offer you 20%. Nobody else wants your truck of watermelons today so you take the 20% instead of 0.
I've seen walmart crush people too. They keep increasing volume so you are under crushing expansion debt, then demand a huge price cut. The debt prevents you from going back to the old way, you either comply or go bankrupt.
With shipping and general supply chain under a lot of stress people are also getting disenfranchised with online shopping due to large delays. I know my recent online orders were delayed over a week (due to Canada Post), and they were just local. May not save B&M but I know a lot of people are longing for the return of B&M because the online experience is so subpar these days. Specially people "new" to it who assume it is always like this....
Now it is a scale thing and can be fixed or adjusted to a new reality, question is, will it get fixed before B&M returns???
Now it is a scale thing and can be fixed or adjusted to a new reality, question is, will it get fixed before B&M returns???
I am surprised at Amazon. I thought they would be able to effectively scale their private/contract delivery force. There should be a huge labour pool looking for money and gas is cheap. I have seen no evidence of that happening which surprised me.
Chop, chop! Why aren't you out delivering my stuff?!?
Bulk order fine, but what was the delivery schedule/terms?
If he was smart he would have a clause in in the contract to cover his raw materials fab authorization. Failing that he's lucky they offered him that deal.
From my basic research on the subject (trying to figure out what was up with my stuff) the "boots on the ground" is the smallest problem. The increased volume (as much as xmas rush, maybe even more) and distancing protocols at sorting/warehouse facilities (reducing the capacity of these facilities) are the two biggest problems.
I knew a guy that made special cleaners and was offered a deal from a big box. He found out before inking the deal that the deal was good the first year or two but after the expansion to supply was in place they slashed their purchase price. With the owner on the ropes they bought controlling interest as a bail out. The owner became an employee with profit sharing.
Stores on the outside of the donut could have entries cut in. There is always a way to access inner stores but the cost will be huge and the convenience factor a deterrent for shoppers, a double whammy.
The old Don Mills Centre changed to The Shops of Don Mills several years ago and may be one of the survivors in a brick and mortar world.
Cloverdale Mall has been looking at a tear down and total rebuild with a mix of stores and residential. This might be an excuse to light the fuse IF there are survivors.
Sherway Gardens, Square One, Fairview, The PATH downtown: Nightmares!
I think one of the big short-term fallouts is I don't see a way for Douggie to avoid staggering working hours to give public transit a chance to let people spread out. I think the simplest solution is along the lines of "No company may require more than 20% of their employees to start/finish work within any one hour time period". This shifts rush hour out to at least five hours so transit capacity exists. If they don't do something like this, every other measure is just lip service.
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