Business Recovery Specialists and Cash Flow Problems
How we work at Business Recovery Specialists. Case Study 1.
Here at Business Recovery Specialists our aim, quite simply, is to help businesses that are facing difficulties to recover – before the problems get so bad that insolvency is the outcome. There are many reasons why businesses get in to difficulties. Some of the main ones being: creditor pressure, HMRC Debt, cash flow problems and problems with funding and finance. Each business presents its own problems, so to give you more of an idea of what we do and how we work, we’re going to be publishing a series of case studies about businesses we have helped to recover.
This case study is how we helped a long established company in the haulage industry recover after coming close to the scrapheap when cash flow problems started to bite.
The Problems Faced by this company
Founded in 1970 this haulage company – a family business – had been trading successfully for many years. However, during the difficult economic climate of the 2008 recession, significant cash flow problems began to bite and it seemed that insolvency loomed. As is often the case, the cash flow problems were related to late payments from clients, creditor pressure, HMRC Debt and difficulties with finance. Consequently, it was a perfect storm.
We Helped the Company Recover
Our view was that the fundamentals of the business were sound – its people, its products and the quality of its work. Swift action, however, was needed in order to create a breathing space to facilitate recovery. We proposed and implemented a comprehensive package of support, which included:
- Agreeing time to pay arrangements, where needed
- Refinancing the assets to help the directors inject cash into the business
- Securing loans to clear creditor pressure issues
We also helped improve the financial systems
Work was also needed to upgrade the company’s financial systems as part of a drive to improve its performance incrementally. The work included:
- Producing timely accounts
- Key performance indicators
- Identifying and maximising funding opportunities
The Outcome was Positive. This is what they said about our work
Our work helped the company avoid insolvency. They are now trading profitably again, and continuing to make improvements. Here’s what the directors said about our work:
“….the future was bleak. The performance of the business was affected by lack of cash and a long list of people wanting money. We now have a much stronger business.
By contacting us when they did, we were able to turn the business around and return to being a profit-making organisation. Sometimes if you ask for help, it can be seen as a weakness, but we could not disagree more.”
In this case, business recovery for our client meant that the owners were able to preserve the jobs of their workforce. And, of course, continue the family legacy as a result.
If your Business is Facing Difficulties, Get in Touch
As this case study demonstrates it is possible to turn a business around, even when the difficulties it is facing are significant. Insolvency is not inevitable, but the quicker you get in touch, the more our business recovery specialists can do to help.