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Most businesses suffer cash flow problems at some point. Initial business cash flow problems can lead to a number of issues that can spiral out of control and even lead to insolvency proceedings if they are not addressed quickly enough. Cash flow solutions should be implemented immediately to stop short term cash flow problems becoming more serious than they need to be.
Cash flow problems occur when your business debts outweigh the cash coming into your business. When things go wrong, such as suffering a bad debt, having a downturn in sales, a machine breaks down, or an order is delayed, the amount of cash in the business is reduced. But the outgoings still mount up and need to be paid – leading to a shortage of available cash and cash flow problems.
Often there is a lag between the time you need to pay your costs and the time taken to receive cash from your customers, known as the working capital requirement. This shortage leads to cash flow problems, or conversely if a business is doing well and requires more cash to meet the expense of growth the overtrading can also lead to cash flow problems.
In general cash flow problems hamper trading. With good forward planning, the preparation of cash flow forecasts and regular, frequent monitoring of the financial position of the company will assist in the prevention of cash flow problems.
For many larger businesses the long term solution to cash flow problems can involve a formal business turnaround, however, this is not always possible for smaller businesses and equally does not always address the underlying cause of the cash flow problems.
We are experts in business cash flow problems and have put together a range of services designed to provide help for businesses to overcome the underlying causes of their cash flow problems. These services can include new funding, but also allow for more effective management of debtors and creditors.
If you have existing business debts that are causing you a problem, we can help you schedule payments to provide additional working capital. In addition we can provide short term business loans, have access to new funding including cash flow funding and have a great track record of helping with HMRC time-to-pay, where cash flow problems have led to the inability to pay VAT, PAYE and NIC. We can even advise on and implement a Company Voluntary Arrangement which can effectively write off up to 75% of your unaffordable debt.
Your cash flow problems may also require deeper analysis in order to identify any underlying business problems and advise the best course of action to aid recovery. Often short term cash flow problems are a symptom of a fundamental deeper issue. An experienced outside perspective can be invaluable and our team of business recovery specialists are able to review your business model and provide the best possible solutions for survival in the future.
When the cash flow problems are immediate, there is no ignoring it. If you act quickly cash flow problems don't have to signal business failure. Contact us now to find a quick solution and relieve the immediate financial pressure so you can get back to making your business work - the way forward, made brighter.
For further information Download our Guidance Paper on 'How to deal with a cash flow emergency’, or view the following relevant pages:
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