Turnaround finance

When a business has cashflow or debt management issues, specific skills and experience are often required to turn the business around. The issues usually relate to cash flow. The day to day management of debt takes considerable time and stops the business operating effectively. A business with cash flow and debt problems requires a rescue and recovery plan.

This could include :

Write a business, sales/marketing, and operation plan
Companies who write and maintain plans on an annual basis do not usually get into trouble. A good business plan will identify the problems and set a vision for the future. Potential lenders, investors, management, and employees need to know what the company’s future plans are. 

Meet with key personnel and a board of directors or advisors
Get the key people in the business together to discuss the issues and problems. 

Meet with employees
Have a company meeting and discuss the business plan, provide employees with a copy and ask for their input.

Meet with customers
Inform customers about the situation and advise them how you plan to correct it. 

Meet with suppliers
Suppliers get very nervous when they hear a customer is in trouble. Prepare a statement outlining the problems and detailing how they are going to be dealt with. 

Contact tax authorities
Particularly important if payment of Tax, PAYE or VAT becomes an issue. Usually HMRC will work with a business to help resolve the problems and it creates much better terms with them than if simply failing to pay and creating the impression of avoiding obligations.

Contact the bank
Make them aware of the situation and the business plans to rectify the situation, particularly if the business is borrowing money.

Review staffing requirements
Difficult decisions need to be made and costs need to be reviewed. Reducing staff numbers will reduce wage costs.

Cut unnecessary costs
Make a list of all the expenses and eliminate any excesses.

We understand the problems of running businesses with cash flow and debt problems because we specialise in rescue, recovery and re-structuring businesses as well as closures if that is the only option remaining.

If you want to keep on trading but finding it difficult to obtain finance or you have had enough and simply want to know the best way to cease trading and repay your business debts then give us a ring. We have the required skills and experience to assist.