Many businesses suffer financial stress, cash issues and a reduction in profitability each year leading to missed payment dates. If left unchecked matters become compounded leading to creditor pressure, possible enforcement action and ultimately insolvency proceedings being issued.
Before these issues consume the business it is important to recognise and take positive action. In this regard a business turnaround plan will be the most suitable option. This proactive approach can introduce stability and create a platform from which to succeed.
Business Turnaround Funding
Additional funding can form an integral part of the business turnaround plan. However this can prove problematical unless steps are implemented to stabilise the business prior to seeking funding solutions.
The initial approach for additional funding is usually the business lender. However dependant on the lending history there may be a reluctance to increase current facilities. In such circumstances there are alternative funding sources available such as asset refinance, factoring, discounting, trade and payroll finance.
Advantages of adopting a business turnaround plan over potentially entering an insolvency process are that you remain firmly in control of a more financially stable business. This should enable growth and profitability to return.
If you are considering a business turnaround plan and/or additional funding, a business recovery expert can help.