ALTERNATIVE FINANCING & PRICE-FIXING
November 8 2013.


In the November issue of Motorcycle Trader, Business Journal takes a look at means of alternative financing and trading guidelines.

Here we give a snapshot of each article but, to read more, turn to pages 30 to 32 of the current issue of Trader.

Alternative financing
Convincing a bank to lend money to a business isn’t easy these days, so what are the alternative sources of finance? Adam Bernstein considers the best left-field options

Bob Hope, the late actor and comedian, summed up quite accurately what most believe about bank lending practices: “A bank is a place that will lend you money if you can prove that you don't need it.” Since the financial crisis struck in 2008, it has become much harder to gain bank funding. The government has used devices such as quantitative easing and Funding for Lending to get cheap money out to the banks, in the hope it would make them more inclined to lend. Even so, the banks remain stubbornly reluctant. So what are the alternative ways of sourcing finance?

Fair guideline or illegal price-fixing?
Online sellers appear to have an advantage: lower overheads. But distributors that impose restrictions on web-based retailers may be breaking competition law. Laura Lumby and Stephen Sidkin explain

If it looks like a dog, walks like a dog and barks like a dog, it’s a dog. On the other hand, distributors’ trading ‘guidelines’ appear not to be guidelines at all. When a guideline is issued to internet traders by distributors – stating, for example, if the trader wishes to use the distributor’s imagery, price discounts must be limited to no more than x per cent – the guideline becomes part of the contract between the parties. What’s more, questions have been asked as to whether such a discount restriction amounts to price-fixing.

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