Published: 05/10/2021 By Jane PriceIts not rocket science to know that cashflow issues are a sure sign that a company is having financial difficulties. When a company becomes less able to pay its debts as and when they fall due, its time to seek help from a professional advisor and very quickly!
7 common signs that a business doesn’t have sufficient cash or working capital to pay its debts when they are due are as follows:
- Tax Debts
- Pension deductions
- Cancelling staff bonusses
- Lack of Investment
- Directors’ remuneration
- Stock levels
- An increase in stress
These seven common signs are explained in more detail on page 3 in the R3 Get Back to Business: A guide for dealing with corporate financial distress.
Financial distress can ultimately lead to insolvency and once a company reaches this stage, the options are limited. The earlier professional help is found and acted upon the more options there are to resolve the company’s issues.
Give us a call to talk through your situation with one of our experts, they will be able to offer you bespoke options tailored to your specific circumstance.
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