A cash flow problem is easily defined. it is when the outgoings of a business outweigh the monies that are coming in. If the outgoings continue to exceed the incoming funds, it is likely that the business will enter into a formal insolvency procedure.
What can I do if my Company can’t meet its liabilities?
First and foremost, if your business is unable to meet its liabilities as and when they fall due, it is technically insolvent and careful consideration should be given as to how you continue to trade. However, although technical insolvency brings about its concerns, it is far from a formal insolvency procedure. There are correlations between having a cash flow problem and insolvency, but if the business is fundamentally sound, then hopefully with careful management and professional guidance, the cash flow issues being suffered can be overcome.
Not only does a cash flow problem effect a Company’s ability to trade in the short-term, it can also have lasting implications if the correct advice is not followed.
If you are suffering from cash flow problems, get in touch with CFS Restructuring LLP today. We have encountered many businesses over the years that have suffered from cash flow problems, many of which we have helped and have continued to prosper.
How do I know if it is just a cash flow problem?
Review your business and its finances and look at it objectively. It is easy to think that a cash flow problem is simply a case of a bump in the road, but it could be something more fundamental, in that the business model in its current form does not work for one reason or another. It is difficult to take an independent look at your business, but with the right help, it will provide you with the insight you need to help you make the decisions to move forward.
If you feel unable to review your business from a third party view point, get in touch with CFS Restructuring LLP today for a free consultation. Our partners have many years of experience helping companies of all sizes across many industries and we can provide you with the detail and help that you need. We will help advise you on the options that are available to you, what you should or should not be doing and whether the business itself is one which could work.
How can a cash flow problem be eased?
There are several ways in which a business can improve its cash flow. It might seem simple to say it, but increased revenue will help, as will negotiation with creditors to reduce any debt repayments.
In the event that you don’t feel that you can undertake this exercise, get in touch with CFS Restructuring LLP today and we will provide you with the guidance that you need to undertake this task and save your business.
As part of our advice, we will tell you, in writing, if a formal insolvency procedure will be better for you and your business. There are many procedures available to companies in financial distress including Administration, Pre-Pack Administration, Company Voluntary Arrangement and Creditors Voluntary Liquidation.
How can Corporate Financial Solutions help me with my Cash Flow Problems?
We have many years experience in dealing with Companies with financial pressures, including negotiating with creditors on their behalf and HM Revenue & Customs, who invariably are the largest creditor and tend to apply the most pressure, including the presentation of a winding up petition.
We will be able to identify quickly where the difficulties with your business lie and provide you with the guidance that you need to escape the pressure being placed upon it.
Can I deal with a cash flow problem myself?
You can deal with your cash flow problem yourself. You will know your business inside and out and will know exactly how your business is operating. However, cash flow problems are likely to mean that the Company is insolvent and it would be prudent to take advice from a Licensed Insolvency Practitioner just to ensure that you are doing all that you can to deal with the issues at hand. Here at Corporate Financial Solutions we will provide you with free advice and consultation so that you know if you need any further assistance with your Company’s cash flow problems, you will have a resource to call upon.
Why should I contact Corporate Financial Solutions to discuss my cash flow problems?
Our Licensed Insolvency Practitioners have many years’ experience in dealing with business that are suffering from cash flow problems. Cash flow problems can be stressful and worrying, but we can offer you the help that you need to solve the issues at hand.
All of our initial advice and guidance is provided free of charge and in the event that our services are required moving forward, we will provide you with a written agreement to the costs involved. We have, as acknowledged in our profession, some of the lowest professional fees in the UK.