The single biggest problem facing small to medium sized businesses (SMEs) today is cash flow. It is also the main reason for business failure.
You may be experiencing cash flow problems for many reasons: Is you business under capitalised? Do you have obsolete stock? Are you under or over-financed?
You may also be experiencing undue market pressures, have a negative balance or perhaps the bank has withdrawn facilities?
Are suppliers and creditors becoming more aggressive?If some of the above apply to you then it is likely they will cause you to experience cash flow problems.
It is also worth noting that each personal guarantee (PG) you sign with suppliers, banks, premises, stock, vehicles are just that: personal. So if your company fails, all your PGs will need re-paying or re-negotiating.
Act now and get professional cash flow advice from 4Squared.