As soon as you believe that your business is in or may be approaching financial problems you must take action or seek help. Hesitating or waiting to see how things turn out will not make the financial problems go away and will not help to resolve the difficulties.

Cash forecasting

Cash flow forecasting is an important task for a business to undertake at all times but is even more crucial during times of trouble or when difficulties are looming. Forecasting must be realistic as over optimism can lead to even further problems, for example you may find that suddenly and unexpectedly you have run out of cash. However being over negative can also create problems and can create a sense of anxiety which may result in you making poor decisions.

Get some advice

An independent specialist can be a great help, as they will be able to give you an objective view and they may see solutions that you don’t and can often identify the root cause of the problems that your business is experiencing, whilst helping you obtain the injection of cash that you need.

Cash is king

Run your business with the idea that cash is king, try spending less and make sure you know where every penny is spent, also try and refrain from spending until you make money.

Business funding options for distressed businesses

Cash flow difficulties can prompt businesses to find new ways of boosting working capital fast. However even though your business may be in distress and you need to take action quickly, make sure you consider all your options so that you don’t make expensive or restrictive funding decisions.

There is a range of funding options available to you, and business funding solutions for distressed businesses usually include a combination of methods.

The funding options can include:

  • Invoice Financing, such as factoring which allows you to unlock the cash that is tied up in your unpaid invoices.
  • Stock financing, enables a business to borrow money against the value of the stock they hold on their balance sheet.
  • Asset financing, allows you to use your assets to secure a cash injection.
  • Property financing, allows you to raise finance on your land and buildings.

For further information about business finance please contact our advice team on 0800 597 4757 or apply online using the form opposite.