Struggling Businesses

If your business is struggling, there are a number of signs that could give early warning signs that its time to look more carefully at your company. Firstly cashflow issues are a significant sign that your business is in distress. If you are finding that you are continually putting in more money into your business each month, it could mean you have cashflow issues. If this issue is not rectified, your business will become insolvent and may need to be liquidated at some point.

Another sign is the high interest payment on debt. Banks charge high interest rates, because they deem you to be high risk and therefore want to recoup their money quicker. If you are being offered loans at higher rates, it maybe time to think of why the banks deem you to be high risk. It will involve an honest look at your business.

You could also look at you ability to pay our bills when they are due. If you find you are always late in paying your bills this maybe an early warning sign that they business is struggling.

Your debtor days are getting longer. This means that you are collecting your debts from customers slower, which will mean you will need to delay payments to your suppliers. However, as we know suppliers want their money on time so you may find you are paying suppliers quicker than you are collecting your debts.

Unhappiness in your workforce. Although this does not always signal a distressed business, if you have a workforce which is disgruntled and not motivated, it would lead to potential issues for your business down the line.

If your business is struggling with any issues and you want a clean exit or you may want to bring onboard an equity partner to help you; feel free to reach out to Imran Hussain today.