What To Do When You Need Business Crisis Cash (Galen Partners Business Guides)

A basic guide for owner managers to business rescue finance for use in a business turnaround, cash crisis, or insolvency insolvency, covering a range of finance sources including business loans and equity which can help cash flow.

Cash is the life blood of your business. Without enough of it, circulating quickly enough through your business’s body, your business is dead.

Because what happens when a business fails, to be simplistic, is that it runs out of cash; insolvency is essentially a matter of being unable to pay your bills when they are due.

And while business failure is often associated with decline and losses, in fact a business can run out of cash for a variety of other reasons such as:
• Excess illiquid assets – where the business has tied up too much of its cash in plant and machinery, property, slow moving stock, or development of a new product and has insufficient left to fund its trading.
• Too much growth – where the business’s transactions are expanding faster than the cash resources needed to fund them (‘overtrading’).
And so, whatever the underlying reason for a cash crisis, the need to deal with it urgently is the same.
And that is where this Galen Partners’ Business Guide to potential emergency sources of business funding can help you.