Updated: 25th February 2021
If your monthly debt repayments exceed the amounts of money coming into your company then you will soon start facing cash flow problems. Over time these issues can become serious causes for concern and threaten the viability of your business. Click the video below for a better understanding.
Cash flow problems can be defined simply; it’s when debt payments outweigh the money coming in. Once a company begins experiencing cash flow problems, commonly the biggest worry for directors is a winding up petition being presented by a creditor. It may be just a temporary problem that can easily be resolved, or maybe you’ve been in denial and there are serious underlying issues which require radical steps to rescue the business. Business cash flow problems open the door for a great number of other issues which can lead to formal insolvency proceedings unless you seek help from professional insolvency specialists at the earliest opportunity.
There are several different ways in which cash flow may be improved, such as by increasing income, improving profit margins or by reducing the debt repayments to creditors through negotiations. Therefore, if you're unable to increase income despite your best efforts and you can't afford to pay off your bills and debts, then the only remaining option for rescuing your business from insolvency is to approach your creditors with some type of repayment proposal to begin the route to recovery.
We specialise in dealing with creditors such as HMRC and can negotiate payment plan arrangements on your behalf or look into funding options such as invoice finance to allow your company more breathing space.
For more information on how to handle cash flow problems and the options available for your company, contact us to arrange a free confidential consultation at one of our regional offices.
Our extensive office network comprises 100 offices across the UK with a partner-led service offering immediate director advice and support.