Christmas is creeping up, for many a time of joy, but for some a time of dread and debt… the...
It’s a tough time to be in business, with margins tight and cashflows tighter, it can be a fine line between remaining solvent or descending into the red, with a small nudge in the wrong direction at the wrong time being all it takes to leave you searching for insolvency solutions. Could Insolvency Finance be one of them?
It’s a truism that cash is the lifeblood of any business and many otherwise viable companies have been forced to close due to being unable to keep tight enough control of their cashflow or being impacted by external pressures. If, when there’s no money to pay for the things that need to be paid for at the time they need to be paid, a fast solution need to be sought and Insolvency Finance might well be the difference between continuing to trade or being forced to fold.
What Circumstances Can Insolvency Finance Help With?
As Licensed Insolvency Practitioners, we’re able to provide a number of formal insolvency and business rescue solutions, however, for businesses which are only just over the insolvency threshold, a quick non-formal solution might be more suitable to fix the immediate problem and with advice, set their finances heading back in the right direction. These are solutions Lines Henry can also provide.
If, for example, your cashflow relies on your creditors paying on time, then late payments could leave you with less in the bank than you need in order to pay your own invoices. This can have a cascade effect meaning that you have to delay payments to your own suppliers and you bank might start bouncing your payments. Ultimately this could put you at risk of damaging the relationships you have with your suppliers and possibly they or your bank could withdraw your credit facilities putting you into a much worse financial position where you have even less liquidity.
How Can Lines Henry Help With Insolvency Finance?
At Lines Henry, helping distressed businesses and those under financial pressure is what we do. We have decades of experience in finding just the right financial solution for a variety of fiscal problems.
We can look at your business finances as a whole and use the good relationships we have with a variety of accountants, bank managers and funding providers to come up with a bespoke plan to return your business cashflow to the black. Often, this can involve helping you release the value of funds tied up in your debtor ledger through invoice discounting or factoring so that you can make use of the money you’re owed sooner, allowing you to pay the money you owe.
Contact us to arrange a free and confidential consultation and find out how Lines Henry can help bolster the fiscal buffer between your business and insolvency.