Whats your approach to relieving the severe cash flow pressures that have built up?
In the immediate short-term, honest, open vendor and creditor communication are key. Were adept at stepping in with a company and, very professionally, handling all communications with trade creditors and the bank. That quickly wins credibility and saves owner-management a ton of time and distraction. We can help get immediate control of cash flow with the aid of a simple but effective computer application we developed. It enables the company to do better at projecting weekly cash receipts and prudently rationing every dollar disbursed. For the longer haul, restructuring debt and winning deferred vendor payment arrangements is generally necessary. Debt service and other payment commitments must be brought within the bounds of available cash flow. With the bank, for example, a moratorium on principal repayment, or consolidating and extending the term of repayment are possibilities. These kinds of sacrifices are not won, however, without owner-management and employees giving up something
