Cash Flow Problems
The Business Debt Advisor assists companies to build an optimal capital structure and to establish a robust debt policy.
Positive cash flow is the lifeblood of any business. Yet cash flow problems threaten businesses throughout the UK. The causes of cash flow problems vary from macroeconomic issues (inflationary pressure, recessions etc, legal changes) to issues within your business.
Cash flow problems happen when a business does not have enough liquid cash to cover its liabilities. When cash outflows exceed cash inflows, businesses may struggle to pay debts and other expenses.
Net cash outflows don’t necessarily indicate that a business has a cash flow problem. It’s very common for businesses to experience a net cash outflow when making big payments or experiencing a seasonal slowdown. Cash flow only becomes a problem when outflows exceed inflows. Then the business can use up its cash reserves and can no longer meet its liabilities.
Cash flow issues can arise from low-profit margins, invoicing issues and collecting debts. Over-investing in inventory is another common cause.
Cash flow problems are one of the clearest early warning signs of business failure.
We can help you analyse your cashflow problems and help you to fix them. Our team of highly experienced small business advisors are specialists in guiding small businesses. If you have reached insolvency, our Insolvency Practitioners can advise on the best available options.
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Client Story
We had never heard of a CVA and had concluded that the only solution was cessation of trade. The Business Debt Advisor talked us through all the possible solutions and we were quite simply amazed that creditors would accept less than payment in full. The initial period of trading after the CVA was approved was initially tough as certain creditors would only trade on a pro-forma basis but once they realised the business was not going to fold, we were able to trade on normal credit terms. The team at The Business Debt Advisor were extremely professional and we are delighted with the outcome especially as they kept their costs to a minimum.