When considering how can a business avoid failure or what are the reasons why a business fails, a positive cash flow position is usually top of the list. Even with a healthy balance sheet, if you can’t pay your staff and your creditors on time, you will experience how poor cash flow affects a business first-hand, and will inevitably find yourself dealing with business failure.
Late payment from customers is one of the primary reasons businesses are unable to pay their own creditors on time, which if left can lead to the need for company rescue and a business recovery strategy for an effective business turnaround. It is therefore vital that the person in charge of collecting payments in any business turnaround, must be good at their job and well rewarded to avoid cash flow problems, and this becomes more vital during a company restructuring and business turnaround situation. At Francis Wilks & Jones we have an expert team of debt recovery specialists who can help collect in money quickly for you.
How do you handle a cash flow shortage?
When considering how do you handle a cash flow shortage in a business recovery situation, and therefore how do you prevent a business from failing, directors of a business in business recovery should prepare a plan to work out how can you prevent a business from failing if you had no cash coming in for a period of time, say 7 days or 14 days or 28 days. That way business owners will be prepared to handle a cash flow shortage as it arises, and will have a good business recovery strategy in place to bring about an effective business turnaround and company rescue if this happens. Taking control of cash flow is crucial when considering how do I revive a dying business.
There are ways of improving a company’s cash flow situation, such as raising short term finance, cutting costs and other methods. At Francis Wilks & Jones we have a vast range of experience on advising businesses in business restructuring or business turnaround situations on how to improve their cash flow issues.
If your business is experiencing cash flow difficulties and you would like to discuss the matter with a business rescue expert, then contact the team at Francis Wilks & Jones today. With the right help from a business rescue expert, and the right business recovery strategy, most cash flow problems can be resolved. We also have excellent links with different types of finance providers and brokers.