If you’re struggling with debt or experiencing cashflow issues, we’ve got all the tips on immediately getting your business under control - or at least until you bring in the experts to save the day.
Small business is at the heart of the global economy where nine out of every ten companies are privately owned SMBs. Small to medium businesses make the world go round and form an important part of the process with a product's production and distribution. But whether big or small, business is fast, tough and competitive. In business, many are called, but few are chosen.
Access to finances, regular cashflow while adapting to customer demand and the shifting economic climate means being in business is difficult. In our article Make Your Business Future Proof, we offer tips to help you keep your fingers on the pulse. But our blog The Warning Signs Of Financial Difficulty shows it’s very easy for businesses to burn through the cash.
Financial difficulties come with
- Incorrect pricing structures
- A lack of access to finance
- Unrealistic profit margins
- Poor cashflow
- Disorganisation in processes and administration
- High employee turnover
If these difficulties are plaguing your business, take our tips on How To Protect Your Business Right Now - or at least until you seek professional help. And don’t forget: You’ve got this.
Cashflow is the life blood of business. Without cash, the payroll, creditors, rent, utilities and expenses aren’t covered. While selling assets or restructuring business frees up some cash, your income channels are the first place to start. It’s about receiving funds when you need them, rather than when the client is able to pay. Here's our advice:
- Follow up on overdue accounts - manage debtors with strict payment terms in place for your accounts receivable to pursue, week daily
- Look at negotiating longer payment terms with suppliers
- Review payment services to see if you can have money in your pocket, sooner
- Check stock levels to keep your stock manageable which could possibly reduce storage and insurance costs
- Explore invoice factoring
By addressing your debt situation, you’re already on the path to salvation. We suggest this:
- Prioritise debt payments by tackling the highest-interest rate debt or personally-guaranteed debt first
- Speak to your creditors - frank and personal discussions over the phone or face to face explanations of your financial situation can lead to positive outcomes. Then stick to these: the worst thing you could do is negotiate a repayment plan, then dishonour that agreement.
- Track your budget and produce weekly Profit & Loss Reports to understand your true financial position - particularly if your business is operating on a week to week basis
Call For Help
If you’ve managed to complete these tasks. Congratulations.
Or perhaps everything still looks overwhelming. And that’s ok.
These tips are only a quick fix solution. The band-aid needs to come off sooner rather than later to let the real healing begin. Negotiating with creditors and dealing with financial institutions while managing debt and running a business is time consuming and difficult - and no amount of stress is worth the mental toll on you and those around you. Don’t be afraid to call in the experts. The specialised aspects of business management such as accounting, processes and marketing are often outsourced or left to the wayside. This is where you call in the professionals.
When you call for help, here’s what happens next:
- Invoice factoring facility is setup to allow for immediate cashflow
- Internal business operations are reviewed and restructured
- A strategic and financial plan is drafted, aiming for a scaled and efficient approach that focuses on the core of your business and sustainable business growth
- A structured payment plan is negotiated with creditors without effecting the value of the business
This is what professional help does: it makes things better.
When the experts come in, you can expect
- Financial issues are addressed
- Business and personal assets are protected
- Business continues to trade
- Clients and creditors are held
- Employees don’t lost their jobs
These are the best results every business works towards - and we can make this happen for you.
Trying To Get Your Business Out Of Debt?
We Know How. Contact Us.