Avoiding Financial Difficulty - Advice and Online Quotes
Businesses need to be constantly on their guard against getting into financial difficulties. Short term cash flow problems can initiate a spiral downwards that could result in insolvency and business failure.
The way to avoid these problems is to retain strong control over access to business finance in whatever form is appropriate. Cash flow forecasting, robust credit control and a firm grip on spending are a good place to start but it is also important to have alternative routes of commercial finance in place.
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Warning Signs of Financial Difficulty
The first symptoms of impending problems can be subtle and easily overlooked in the day-to-day routines of doing business.
A business that is exhibiting more than one of the problems listed below should consider itself to be at significant risk:
- Payments to HMRC are consistently made late.
- Running the payroll requires careful cash management every month.
- The business is consistently using its overdraft facility.
- Calls and threats from creditors are increasing.
- Customers are taking longer to pay their bills.
- Significant amounts of management time are spent juggling cash instead of focusing on the business.
- The level of stress and anxiety is increasing.
Because weak cash flow creates more work it absorbs time, distracting management from the more serious underlying problems which can jeopardise the entire business.
Preventing a Financial Crisis
No business wants to lose access to business finance and become insolvent. The best solution is to have preventative measures in place. These should, except under extreme conditions, see off any possible crises.
Such measures should include some or all of these:
- Medium and long term cash flow forecasts, updated regularly.
- A strong and consistent approach to credit control.
- Tight control over spending.
- Arrangements for new sources of finance, such as invoice factoring.
- Input from a neutral third party, bringing a reality check.
How Touch Financial Can Help?
As the leading commercial finance broker in the UK we have years of knowledge and experience in opening up access to business finance for organisations needing a cash injection.
We operate with a panel of carefully chosen funders including Lloyds TSB Commercial Finance, Royal Bank of Scotland and Bibby Financial Services and we can offer exclusive discounts and other benefits.
Our service is free of charge to our customers because the fees are paid by the funders.
If your organisation wants to take preventative action against liquidity problems and boost its access to cash, why not give us a call today? A no-obligation consultation from our expert advisors is only a phone call away.
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Also in this section:
- Overview of Business Finance
- Finance for Business - Help, Advice and Quotes
- Finding The Best Deal - Search for Funding
- Small Business Funding - Fuel Your Growth
- Funding To Start A Business
- Business Funding For Distressed Businesses
- Small Business Finance for Better Cash Flow
- Guide to Business Overdrafts
- Guide to Business Credit Cards
- Business Finance - Protecting Future Income with Credit Protection
- Avoiding Financial Difficulty
