Business Funding For Distressed Businesses

Action must be taken as soon as a business believes itself to be in, or skirting the edge of, financial problems. Hesitation or simply hoping the problem will go away are not strategies with a track record of success.

Cash flow forecasting, important even in good times, is an absolute essential when difficulties loom. Forecasting the business funding must be as realistic as possible because the slightest measure of over-optimism can result in a nasty surprise when there is suddenly no cash in hand.

On the other hand, being overly negative with forecasting can create a sense of panic which in turn leads to poor decision making. To obtain an objective perspective it is wise to involve a third party, ideally an independent specialist, as soon as possible.

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Business Funding Options to Consider

Cash flow difficulties can force businesses to find new ways of boosting working capital, often at short notice. Care needs to be taken that decisions made in haste do not turn out to be unnecessarily expensive or restrictive, so a range of alternatives should be looked at.

These will include the following:

  • Invoice Financing – This is a popular form of business funding because it unlocks cash that is tied up in the sales ledger. It usually involves either Invoice Discounting or Factoring, with the latter offering the additional benefit of taking over management of credit control.
  • Stock Financing – A business can borrow money against the value of stock held on its balance sheet.
  • Asset Financing – An asset can take many forms, including expensive plant and machinery, and these can be used as a basis for securing a cash injection.
  • Property Financing – Land and buildings can provide strong security against which additional finance can be raised.

A business funding solution for a distressed business can include any one or a combination of these measures.

Funding Advice From Touch Financial

Our free service has helped thousands of UK organisations to resolve their business funding needs. Our expert advisors have years of experience and whatever situation your business is in, they have probably encountered it before.

We are the leading commercial finance broker in the UK, working with a panel of lenders comprising leading banks and smaller, specialist funders. We are also entirely independent so our advisors are focused on getting our customers the best deal.

So if you are looking for free, independent and impartial advice on finance solutions for your business, why not get in touch with us today?

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Every month Touch Financial help businesses improve their cash flow with invoice finance. Request a quote to find out how much extra cash you could raise.

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