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Radclyffe House 66/68 Hagley Road Edgbaston Birmingham B16 8PF

Business turnaround

Staying Afloat

It feels like everyone’s against you. You’re running out of cash. Your suppliers are leaning on you, and the bank’s asking hard questions. Maybe you don’t know what to do. When things get tough, we’re on your side … helping to support you and protect your interests.

Regular health checks

If your business is in difficulty, it’s essential to seek advice as soon as possible. As a sole trader or partner, you’re ultimately personally responsible for the debts of your business. As a company director (or member of a limited liability partnership) you may not be personally liable, but you’ll still have legal obligations to fulfil.

One key obligation (on top of the obvious self-interest!) is that you must monitor your financial position regularly. Company directors can be prosecuted if debts are run up after the point at which they should have concluded that the company couldn’t avoid insolvent liquidation.

We can help you keep on top of your financial performance with regular accounts, forecasts and advice. This often includes ‘snapshots’ of the solvency of the business – whenever they’re needed – together with advice on your position and responsibilities.

Timely strategic advice

We can assist you in developing a strategy for achieving success and maximising your position. We can help you identify threats to the business’s survival and help you identify commercial opportunities. Strategic planning can put you in a position to react to threats in good time and put you in a position to profit from opportunities. Not only is this sound business practice but it also discharges some of your responsibilities as company director to act in the best interests of shareholders, employees and creditors.

Addressing the warning signs

Credit Control

If you’re regularly failing to receive the money you’re owed by customers for goods or services, your cash flow can suffer serious damage. You may well have to borrow money and pay interest on it to make up the shortfall. We can help you develop sound credit control procedures, run credit checks on new customers, formally chase late payers, and seek Court judgments on unpaid commercial debts. If you want, you can even outsource your sales ledger and credit control to us completely.

Bad debts

The more you depend upon a particular customer, the higher the risk that one bad debt – or a series of them – will cause your business major problems and serious damage. We can help you stay alert to the financial health of your customers, and reduce your exposure to the risk of bad debts. And once you’re aware that a significant debt is likely not to be paid, we can advise on your options for mitigating the effects of nonpayment.

Bank borrowings

If you’re regularly failing to receive the money you’re owed by customers for goods or services, your cash flow can suffer serious damage. You may well have to borrow money and pay interest on it to make up the shortfall. We can help you develop sound credit control procedures, run credit checks on new customers, formally chase late payers, and seek Court judgments on unpaid commercial debts. If you want, you can even outsource your sales ledger and credit control to us completely.

Rising overheads

Businesses often increase overheads – including rent payments, staff wages and maintenance expenses – in the expectation of increased turnover. If you’re in this situation, we can help you keep a close eye on how your overall financial performance has changed following an increase like this.

Rescue

If the monitoring of your finances shows that your business is already insolvent or in serious danger of becoming so, you’ll need to consider rescue procedures. We can help you explore your options. If the problem can’t be solved by attracting new finance, we can help you explore the possibility of entering into an informal arrangement with creditors, such as a debt for equity swap.

If you conclude that there’s no option but to use a more formal rescue mechanism, we can advise on your statutory options and introduce you to a registered Insolvency Practitioner to formally appoint.

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