Successive studies of UK small businesses show that around 80-90% fail due to bad cash flow. Understanding the triggers and improving your cash flow performance can help your company reach its full potential.
Helping businesses solve cash flow problems
There are many reasons why your company may be facing a cash flow problem. If you are facing a capital shortage of £1m or more and would like Shaw & Co to explore suitable funding or refinancing solutions, please complete our Credit Suitability Survey by clicking the button below.
What does this service provide?
If your business is suffering cash flow problems and you need to improve your financial performance, here’s some of the support we can offer:
- We will conduct a forensic analysis of your business to understand its current trading performance and identify the root cause to your cash flow problem.
- We will help you prepare for funding by advising on the most suitable financing options for your business including debt, equity and unsecured lending.
- We can manage the process of negotiating a more suitable debt solution either with your existing lender or a new one, typically as part of a competitive process.
- If required, we will identify suitable alternative business financing solutions through our network of 700+ lenders, funds, family offices and HNW networks.
- If you require debt restructuring, we can negotiate with your current lenders to seek repayment holidays, longer amortisation profiles, facility extensions and possibly instrument conversions.
- We offer advice on how to scale your business in a prudent manner to avoid the perils of ‘overtrading’.
Important things to consider
- Our service only supports businesses requiring £1m or more in working capital.
- There are many issues that cause cash flow problems ranging from temporary cash shortages all the way through to macro-economic shocks such as Covid-19. Knowing the triggers and making prompt changes to your operations can help save your business from collapse.
- Having an inappropriate capital structure whereby short-term borrowing is used to fund long-term assets can accelerate cash flow problems or disputes with creditors.
- Weak financial governance, patchy management information and poor collaboration between operational functions will exacerbate a cash flow crisis.
- Continually monitoring changes in the macro-economy and adapting your business to those changes can help mitigate cash flow damage. This includes close monitoring of your competitors, government policy and shifts in consumer behaviour.
- Ignoring any cash flow problem will put your business at risk of bankruptcy.
How much will the service cost?
Our fees are designed to ensure that we are totally aligned with your objectives. We have designed, over years of experience, a balance between commitment fees and success fees that makes sure that we are “in it together”. Our objective is for clients to always see value in our fees that significantly exceeds cost.
What should I do next?
If you are facing capital shortage and would like Shaw & Co to explore suitable funding or refinancing solutions, please complete our Credit Suitability Survey by clicking the button below (it should take no more than 5 minutes to complete).
Alternatively, if you would like discuss how you can improve your company cash flow, please contact one of our corporate finance experts shown on this page, or click the arrange a meeting button.
“Cash flow problems can be self-inflicted due to poor management or can happen out of the blue due to macro-economic forces. Whatever the cause, it is critical that you address the cash flow problem. This will undoubtedly involve making prompt changes to your operations, ensuring better collaboration across your organisation or adjusting your sales and marketing strategy to become more competitive.”Alexei Garan, Head of Debt Advisory