It isn’t only individual consumers who are experiencing money problems at the moment as a great number of UK businesses are also dealing with an interruption in cash flow. Altogether too many businesses have invoices sitting on the books which have gone unpaid and this is a real problem when it comes to having enough money on hand for day to day operations.
The latest news from the BoE isn’t good as the UK has been plunged into a double-dip recession, even if ever so slightly. Unfortunately, a recession by any other name is still a recession and businesses are suffering the consequences of it just as individual workers are. What’s to be done about it? Actually, there are several avenues a viable business can explore but first it needs to be determined if, indeed, a business is viable.
If it is simply a matter of collecting on unpaid debts, then it probably is. At this point, factoring may be a great solution as it solves several problems at once. Basically, factoring is ‘borrowing’ money against the books (unpaid debts owed a company) and placing those debts in the hands of the lender or the lender’s agent. Now it is no longer the responsibility of your accounting department to waste precious hours trying to collect as that becomes the job of the factoring agent.
Keep in mind that factoring isn’t an option for all companies so it is imperative to seek reputable professional guidance. There may be other options available such as asset finance but an experienced business recovery organization should have the potential to find the best solution for your company at the current moment. Don’t sit back and wait to go bust when help is out there. You may be ‘cash poor’ at the moment, but that doesn’t mean you need to call it quits.
Bio: Real Business Recovery is a team of highly skilled and motivated professionals who are registered with R3 and will always seek to advise the best business recovery solution or solutions for your company.
This is a guest post