TRADING OUT

Nearly all businesses will suffer a downturn at some stage in their existence just as they are likely to face cyclic cash flow problems.

If you believe that the business does have a future then Trading Out can be a particularly useful tool. Then we can achieve some breathing space for your company.

The key element here is one of complete honesty:

Informal
Contact your key creditors and explain that cash flow is tight but repayment can be achieved in an affordable time frame. A planned approach is essential.

Formal
The formal approach will require the services of a turnaround specialist to achieve a deal on your behalf. The specialist will need to see evidence that the directors have a planned approach to recovery. Some creditors may accept write-downs of debt if they can be convinced the business will survive and prosper in the longer term.

New Finance
Introducing new money can be a strong indicator that you are serious about the future of the business in the longer term.

You must act quickly and not wait until legal actions are taken against the company.

To discuss your Trading Out options call Philip Wood on 01782 713700.