People understandably want the hard work that they do to be rewarded in financial terms. Unfortunately, recent years have underlined how this is not always the case. Many individuals in diverse walks of life have had scant benefits from their efforts. Directors of small or medium-sized businesses have sometimes been at the mercy of economic events beyond their control.
At Cooper Matthews we have considerable experience in assisting those with a company cash flow problem. It is important for everyone to be aware that a temporary cash flow difficulty is no obstacle to long term success. Even when it seems that a business is in particularly dire straits, a company recovery may be possible.
In years gone by, there was a definite stigma attached to being in debt. Elements of that attitude have lingered on in the collective psyche. While being in debt is not ideal, it should be accepted that it is part of modern life. Everyday activities like becoming a homeowner or pursuing business goals would be exceptionally problematic without credit.
Since the Great Recession of 2008, banks have been reluctant to lend money and some companies have become too risk averse. The lesson of the last year or so should be that everyone has to be less afraid of being in debt. If companies borrow too little in the months ahead, there is a danger of economic stagnation.
Those firms which cannot cope with existing debts should not waste time thinking negatively. Instead, they should utilise expert insolvency practitioners who have the know-how to assess the situation properly.
Business debt, company cash flow problem, company rescue