The good news is that you have options worth considering, no matter how desperate your company's situation is. Obtaining emergency funding, working out mutually satisfactory arrangements with your creditors, and pointing the business back toward profitability - it's all possible when you keep an open mind. If your business is running at a loss right now, consider acting on the following suggestions:
1) Make Formal Arrangements With Creditors
For a lot of businesses, the difference between running at a loss and turning a modest profit is simply a matter of reducing the organization's financial obligations. If you can reach an agreement to lower your month-to-month repayment obligations, the funds you free up may be vital to turning your business around and getting back to profitability.
The key instrument here is a company voluntary arrangement, or CVA. These can be drafted by a professional insolvency practitioner to produce more effective and attractive outcomes than engaging in your own casual negotiations with your creditors. Besides consolidating debt and lowering your monthly repayment requirements, a CVA also gives you an opportunity to restructure or eliminate contracts (with suppliers, employees, and partner businesses) that are currently hurting your company.
It’s also good to look at tax withheld according to wtax - check out this case study about withholding tax
2) Look At Secured Financing
Even if financial adversity has damaged your company's credit rating, you may be able to secure funding by using assets or outstanding invoices as collateral. This process can deliver either a loan or a line of credit, depending on your needs. Asset-based financing is an excellent way to bolster your cash flow and get your bills paid; thanks to discounting and invoice factoring you may discover you have more financial resources than you thought available.
3) Consider Company Administration
Going into company administration is a serious step. It involves allowing an insolvency practitioner to take the reins of your business and running it with satisfying creditors as your top priority.
The chief advantage administration has to offer is that it protects you from legal action initiated by creditors after you enter into it.
Company administration is definitely worth considering when you have serious doubts about the management abilities of the organization's current directors. Experienced insolvency practitioners can make the process as fast and painless as possible.
4) Work With The Experts
While the suggestions provided above give you plenty to think about, picking the right option for your specific situation and implementing it effectively is a job for the professionals. Our experienced insolvency practitioners are standing by to assess your company's situation and chart out the best possible strategy for righting your ship. Our professional credentials require us to deliver only accurate, honest, and productive advice that serves the interest of both companies and their creditors.
Cell phone tracker
Remind & convert past visitors, ...
Smart Website Popups
The international IT market is becoming increasingly sophisticated, new software companies with innovative business models are constantly being launched.
Consumer knowledge is the key to business success. If customers do not know about a business, it's not likely to ...
An entrepreneur’s guide to finding outside investors. You’re a fledgling company or startup CEO, ...
If you have a taxable turnover which exceeds a set amount, you will need to register ...
Africa is an emerging new market for the businesses to explore. With the latest innovative apps ...