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5 IF THE WORST COMES TO THE WORST.... The figures provided later on in this document, which have been calculated by a chartered accountant for us, are probably on the conservative (or pessimistic) side. Even so they show a slight surplus on a standard year after allowing for loan repayments and transferring over £3000 as a subsidy to the Gay Centre, which may not be so prthfitable as at present once the club opens. So the scheme is certainly viable. But suppose for some reason, the idea does not catch on, and we sold up after 6 months (say). The financial position would be: |
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| Initial
loans Less amount repaid Still owed to bank/brewery Sale of premises Deficit (to be met by new loan on Gay Centre) |
£48,000
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| After two years, the position would be |
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| Initial
loans Less amount repaid Still owed to bank/brewery Sale of premises SURPLUS |
£48,000 17,000 ________ 30,500 40,000 _______ £ 9,500 |
| These
figures ignore other creditors, but personal guarantors are only responsible
for the loan required to buy the property. The budgets provide for adequate
insurance cover against fire, theft, loss of licence, etc. From the above
figures, guarantors may well feel that it is unlikely that they will ever
need to part with any cash. Afflr all, property goes up in value: but
it would be entirely reasonable for guarantors to require the property
to be structurally maintained in good condition. Naturally, we think that the scheme will be a success and that sale of the promises need never be contemplated. The loans would be paid off in 8 years. WHAT IS REQUIRED NOW? Before we put in an offer for the premises, we want to be sure we have the following things: 1. Adequate financial backing. At the time of writing, we have guarantees of just over £20,000. If you have credit, this is something you can help with. You do not need to hand over any money, or promise any, just be registered with the bank as a guarantor for the loan 2. Adequate personnel backing. People are required with the interest and energy to help make this work. 3. Adequate club membership. If the prospect of a private gay club makes you want to become a member of SHRG, it will help this project become a reality if you let us know. If you agree with the setting up of a private gay club in Glasgow, please fill in the questionnaire at the back of this Prospectus, and return it to SHRC Glasgow, 534 Sauchiehall Street, Glasgow G2 3LX. |
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