If your business has been affected by unusual weather conditions – perhaps a long period of sunshine or flooding – you may be worried about your company’s future.
Thankfully, there are some steps you can take to get yourself back on track and improve cash flow.
Signs your business might be struggling could include:
- Poor cash flow
- Reduced profits
- Lower turnover
- Inability to pay suppliers on time
- Failure to file statutory accounts or pay HMRC promptly
Improving cash flow
You need to know exactly how much money is coming in and going out of your company. Tracking cash on a daily basis can really help you to forecast and plan ahead.
Ensuring that there’s sufficient cash available to pay the bills can help you minimise the risk that you fall short during months of reduced profits.
If it’s difficult to build up a buffer in your business account to cover you during sparse periods, eliminating certain non-essential outgoings could help.
HMRC Time to Pay (TTP)
HMRC has the ability to force companies to close down if they fail to pay their taxes on time. So, if you fall behind with your responsibilities, this has the potential to cause trouble.
You may be able to negotiate a Time to Pay (TTP) arrangement with HMRC. This could provide you with some much-needed breathing space. You’ll be able to pay your arrears over instalments, rather than facing several months’ worth of debt in one go.
Alternative finance is another option that may give you peace of mind. There are a number of types of alternative finance to choose from including invoice finance and asset finance. These options can often give you access to cash by letting you borrow against your invoices or assets.
Company Voluntary Arrangement
If your business is insolvent, a Company Voluntary Arrangement (CVA) could give you the chance to trade your way out of further financial difficulties.
A Licensed Insolvency Practitioner will negotiate new terms with your suppliers and creditors on your behalf and once the agreement is underway, you’ll regain control of your company.
Licensed Insolvency Practitioners can help you determine your best option
By seeking the help of Licensed Insolvency Practitioners you can gain access to professional advice and support. Experienced Insolvency Practitioners will have worked with numerous companies in a similar situation to you and they’ll know exactly what to do to help you.
Here at Clarke Bell we can help you manage your cash flow problems.
So, whether you’ve been affected by the recent hot weather or you’re still trying to recover from winter, please get in touch with our team today.