If you believe that your business is in trouble, the first thing you need to do is seek help. Help is available for distressed businesses, and experts are all too aware that the companies that seek support sooner are much more likely to recover. Hesitating to make changes and hoping that problems will just go away is more likely to increase problems for your business.
Cashflow forecasting is an important part of running any business and should be conducted on a regular basis. It’s even more crucial at times of instability, but must be conducted in a realistic way, as over optimism can result in further problems or difficulties, such as finances suddenly running dry. Overly negative forecasting can bring its own problems too, such as increased reluctance to spend at crucial times and further poor decisions.
Who Can Help?
A business finance adviser will be able to develop a strategy that will be tailored to suit your business and your business’ recovery.
More often than not, distressed businesses just need an experienced, unbiased and objective eye to be cast over the strategies, plans and structure of the company in order for changes to be made for recovery.
Be Careful with Cash
It may seem obvious, but trying to spend less by ensuring that every penny that is spent is of utmost importance will help, in addition to only spending money once you have made money.
Funding Help for Distressed Businesses
There’s a range of options available to businesses in search of a financial boost. Some of the options available are:
Invoice Financing: a great way to free up the money that is tied up in unpaid invoices is through invoice financing. This is one of the best ways to free up cash that your business is owed in unpaid invoices.
Stock Financing: similar to invoice financing, stock financing actually allows your business to secure money against the value of stock on a company’s balance sheet.
Asset Financing: this will allow your business to secure a financial injection against the value of the company’s assets.
Property Financing: this option will allow a business to raise finance against land buildings owned by the company.
Knowing which option to choose could be the difference between your company seeing a full revival with consistent profits or your business being wound up or liquidated. The best way to choose the right course of action for your business is to allow an expert to perform a professional assessment and recommendation.