What do you do when you run a robust, healthy business with a strong sales pipeline and a highly competent management team, but for reasons beyond your control you have a serious debt problem? Is there a way out of a cashflow crisis or does it spell the end of the road?
As the UK moves slowly and tentatively out of recession, albeit under the cloud of a threatened double-dip, there is no shortage of businesses that are experiencing cashflow problems. For some, a cash crisis is down to poor financial controls or an unsustainable business model, but this can hit an otherwise healthy business through no fault of its management.
In PART 1 of our two part series, Nick O’Reilly looks at the signs that your business is in trouble and discusses what you should do immediately, once these signs have been identified:
There are a host of causes that can strike at the heart of a company’s cashflow; a key customer going into administration, the loss of a primary supplier, the departure of a key member of staff or a company disaster such as a fire. All of these events are beyond the control of management, but will undoubtedly impact, often critically, on cashflow.
If your business falls victim to one of these events, there are a number of steps that should be taken immediately.
In the second part of this series, published next week, Nick O’Reilly discusses the number of options management can consider, if the company is unable to steady itself financially by speeding up collection of other outstanding debts.
For more information about any of the topics discussed in this article, or to speak with Nick O’Reilly direct, please contact Georgina Swain at email@example.com or visit website at www.frpadvisory.com
Press contacts for FRP Advisory:
Georgina Swain, FRP Advisory Press Office, Tel: +44(0) 20 3301 7350, Mobile: +44 (0) 7881 523 345, Email: firstname.lastname@example.org
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Services include: commercial & asset finance, corporate insolvency, restructuring, independent business reviews, interim management & placement services, personal insolvency & advisory, creditor services, insolvency investigation services and banking live-side support.
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