Successful bag firm in trouble as bank says no - leatherbiz: Leading n Leatherbiz

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Successful bag firm in trouble as bank says no

15/03/2012
A Portuguese leathergoods manufacturer has told The Wall Street Journal it may be unable to fulfil a “big break” order to make handbags for a French client because its bank has refused to give it a relatively small amount of credit.

Benedita-based António & Mateus was delighted to win an order to make bags for a company in France at the start of the year, but to make sure it had enough cash to complete the production run, it asked Banco BPI, with whom the company has banked for years, to advance it EUR 25,000. According to a report in The Wall Street Journal, the bank thought the matter over for three days and said no.

“We don’t know what to do,” Ana Mateus, one of the owners of the leathergoods manufacturer told the newspaper. “The new order is our big break, but if we don’t get money soon, we may be forced to fire employees and even shut down.”

Under pressure from the European Central Bank, banks in Portugal are being punitively cautious about lending money to businesses, causing severe cash-flow pressures for many.


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