Cash Flow Problems and Solutions
Cash flow is at the core of any business, no matter how profitable they may be. If a business is experiencing cash flow problems, the first thing to do is understand WHY and then address the issue swiftly.
What Causes Cash Flow Problems?
The most common causes and symptoms of cash flow problems for any business are:
- Creditor demands for payment that can’t be met
- Bad debts and the impact on current cash and future profits
- Collecting in debts due to a business and slow customer payments
- Exceeding bank and finance facilities
- Poor or unreliable cash flow and trading forecasts
If some or all of these are being experienced by a business, we can help. Our team of Business Recovery Specialists works alongside business owners and their professional advisors and once the cause of the problem is identified, implement swift solutions.
How we Can Help Deal With Cash Flow Problems
The help we can offer depends on the cause of the problem.
Negotiating with creditors. Creditor pressure can quickly escalate out of control. Creditors include HMRC, suppliers, banks, financiers and funders and landlords. If this pressure is not dealt with quickly and effectively, supplies can be withdrawn, credit restricted or stopped and recovery proceedings instigated.
We will work with creditors to negotiate a breathing space whilst realistic and achievable payment schedules are agreed. Where there are problems with customers, we can step in and deal with recoveries and management of your debtor ledger, freeing up business owners to concentrate on other aspects of their business. Some of the key steps we take include:
- Establish the solvency of your customer and the reasons why payments are being withheld or delayed
- Effective debt collection – we can remove these problems from you and deal with them whilst you focus on running the rest of your business
- Minimise disputes and review your internal systems to ensure there are no unwarranted reasons for payments to be withheld – whether it is simply supply of components or services or the more complex issues arising out of construction and contract debt, we have the specialists to help
Bank and Finance Relationships. We can also assist with bank and finance relationships. Quite often we find that a business’s finance arrangements are no longer suitable. For instance where a business has outgrown a factoring or discounting arrangement which is impacting on cash availability. We can help source alternative funding arrangements better suited to the business or negotiate changes to the existing funding arrangements.