HomeFWJ TakeawayCompany rescueBusiness recovery and rescueHow do you handle a cash flow shortage?

We are often asked How do you handle a cash flow shortage? Set out below are some useful pointers on the issues at hand and what you can do.

How can poor cash flow affect a business?

When considering how can a business avoid failure or what are the reasons why business fails, a positive cash flow situation is very important indeed. A company with a healthy balance sheet can still fail if it can’t afford to pay staff and creditors on time. Cash is king. It can make the difference between success and a business failure.

If you suffer from late payment or non-payment by customers, we can help you. Our debt recovery team is brilliant at collecting in even the most stubborn of debts. A ledger blitz can help you get back on your feet and help with the company turnaround. It is therefore vital that the person in charge of collecting payments in any business turnaround must be on top of their game. We often work with credit control teams and provide the back up they need to get stubborn debts in. This becomes even more important during a company restructuring and business turnaround situation.

How do you handle a cash flow shortage?

When considering how do you handle a cash flow shortage and therefore how do you prevent a business from failing, directors of a business in business recovery should always be prepared and have a plan in place to allow their business to handle a cash flow shortage for the short and medium term. By being prepared in this way, business owners will have a good business recovery strategy in place for when cash flow problems inevitably arise from time to time, to bring about an effective business turnaround and company rescue. Taking control of cash flow is crucial in any successful business turnaround and company rescue.

There are several ways of improving a company’s cash flow situation, and 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 cash flow within their own business.

If your business is experiencing cash flow difficulties or you are having issues with late payment from customers, and you would like to discuss the matter with a business rescue expert, it is important to act quickly. At Francis Wilks & Jones we have an expert team of debt recovery specialists who can help collect in money quickly for you. Contact the team at Francis Wilks & Jones to discuss.

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