s/business-banking.dwt" --> Insolvency & cash flow FAQ
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insolvency & cash flow faq

 
If we have financial problems, how can we pay your fees?
 
We are highly skilled in this particular sector, and if we cannot add value we do not deserve to be paid. Let us worry about this. We will never charge a fee unless you agree to it in advance.
 
 
How can you help when we and our accountants are doing everything we can?
 
What might seem like an insurmountable obstacle to you is an everyday issue to us that we handle many times during the year. We are experts in our field. We are here to help you.
 
 
Finance seems to be all promises and up front fees. Where do we start if the Bank says 'No'?
 
Try to find someone who knows what they are talking about, who does not charge up front fees. This is not quite as easy as it sounds. You must identify what type of finance is realistically possible and achievable in your cash flow time scale and whether or not it will still be right for the Company in 12 months' time.

We can help with Factoring or Confidential Invoice Discounting, Stock or Asset Purchase. We can put a facility in place, typically within 7 working days, but more importantly we can do this with a Finance House that is right for your type of business. This is a vital but rarely thought of factor.

We can help you to replace your existing Bank, particularly where the Bank is over secured but does not wish to increase its facility. We have specialist finance houses that will know and understand your business and can lend to a much higher value. We also have access to private funding if that is appropriate.
 
 
What should we do if our Bank wishes an independent firm of accountants to come in?
 
Be very cautious and take advice before agreeing to this. We do not have the space here to develop this subject with the seriousness it deserves.
 
 
Our Company does have cash flow difficulties, but we have a buyer showing serious interest. What should we do?
 
Again, be very cautious and take advice from specialists in this area. Unfortunately what happens in the vast majority of cases is the following.

The prospective purchaser has been hovering for some time. They put the Company at ease and everything looks positive. Negotiations take longer than expected. Corporate advisers are appointed to do final Due Diligence. They speak to the Bank and some of the Company's creditors. The purchasers feel, as a result of this, that the circumstances have changed. The end result is that the purchase price is dramatically different from that envisaged or in the worst case the purchase is made from bank appointed Receivers.

Concluding a potentially difficult sale of your Company is probably an area that neither you nor your accountants specialise in. Speak to someone who does, they can turn a potential disaster into success.
 
For advice about insolvency and cash flow issues please contact Banking Liaison Group.
 
 

More on insolvency ...

How we can help if insolvency looms

One insolvency - a true sad story

 
 
 

 
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