Elevate helps businesses in good times and bad.
Managing Cash Flow Shortages
Many businesses encounter periods of cash flow difficulty – for some it’s temporary and for others it’s more serious. We have significant experience in working with businesses that are suffering from cash flow shortages and have a lack of working capital. These shortages either arise from rapid business growth or when businesses are in financial distress.
Before developing a solution to solve the cash shortage, it’s imperative to understand why the situation has occurred. When we are asked to assist we firstly undertake a thorough assessment of the factors leading to the current situation. Often this is due to factors such as the business incurring prolonged trading losses, rapid growth, high debt loads and repayments, poor debtor collection, significant bad debts or excessive owner drawings.
Once the cause has been identified, we then work with the business owner to develop a plan to rectify the situation. This may include various internal and external activities such as arranging additional bank finance, seeking equity contributions, creditor negotiation, business restructuring and cash flow management initiatives.
If we can assist you with managing a cash flow or working capital shortage, please contact us immediately as time is critical.