Services

We can work with you to assess your options and quickly identify solutions to ease financial pressure.

The first step is to prepare a realistic forecast to estimate how much cash you need. It needn’t be complicated; it just needs to be prudent and justifiable – particularly when it comes to sales. This is important for two reasons:

• Creditors who you are asking for support may want to see your forecasts. If the forecast is obviously unrealistic you are much less likely to get the buy-in you need from suppliers, lenders and landlords.
• You want a realistic picture for yourself of what your cash flow will look like. Over-optimism usually means you take insufficient action and makes the situation worse.

Once you have a realistic picture of your cash flow over the short/medium term the next step is to identify how this shortfall will be made up – this essentially means identifying which creditors you will ask for additional credit or extended repayment terms.

The third step is to put the plan into action. We can help you request a concession from your landlord(s), such as a rent reduction/holiday or different payment terms e.g. paying monthly. While landlords are entitled to take a hard line, many will use their discretion to avoid having vacant premises. However, they may well ask for detailed financial information and forecasts to inform their decision making.

Depending on what kind of facilities you have, banks or other funders may agree to a payment holiday, rescheduling of your repayments or a temporary increase in your overdraft or working capital facility. Similarly, asking suppliers, particularly the large ones, to relax credit terms is an option which should also be explored.