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There are a number of actions that an Invoice Finance Company may take in response to learning that a business is ‘in trouble’. ‘In trouble’ can mean different things to different people. In this case I mean it to reflect a situation where the business has had problems. This may be consistent lack of sales, bad debts or management difficulties. The symptoms are usually  pressure from HM Revenue and Customs, CCJs being registered and suppliers not getting paid.

So what does the Invoice Finance Company do when it gets the bad news?

Thursday, 26 May 2011 11:58

New articles and downloads pipeline

The articles and downloads side of this website has only just gone live.  Some minor presentation teething issues were holding it up, but as the content matters more than how pretty it is, we've gone to press.  There is lots more to come, including :

The Problem

A company imports from abroad and does not have to pay for the goods until they are sold on. Payments must be made in the currency of the supplier.  The problem with this is that the exchange rate at the time the goods have to be paid for is a future unknown.

Business bank managers everywhere despair, every day, at the quality of the loan requests they get. To make it worse, these requests are from established businesses, from MD's who, supposedly, know their stuff.  Lenders are given limited information and questionable financial data. This comes accompanied by an expectation that no reasonable bank manager could possibly fail to see why it is a good idea to hand over a big pot of money.

So what is going wrong ?  Why is there a mismatch between the expectations of the bank manager and those of the managing director ?

I'm planning to review some of the books about the banking crisis here.  One of the problems is that the numbers being bandied about are beyond the comprehension of ordinary mortals, perhaps even only understood by aliens  - which might tell us something about the cause of the crisis  (No, no.  Joke. Not Roswell.  Just don't even start.)

Here is my light hearted guide to those big numbers :

It is painfully common to see companies which are desperate for cash neglecting a critical part of the cash cycle - credit control.  Here is what is required :

This article is aimed at managing directors looking for some  help finding solutions to their problems. What does a financial director do anyway ? Do they add value ?  

The long answer relates to the needs and issues of your business. The short answer is 'because two brains are better than one'.

As you get bigger, you employ more and more specialist staff. Until you get there, you need people with all-round competencies. This checklist is designed to help you spot what you need when there’s only one person looking after your books.

A really good bookkeeper is someone who :

 

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