Business Rescue - Trading Out

Also read: Business Turnaround | Refinancing | Cessation

From time to time every company will suffer from cash flow problems but this does not always result in complete failure. If the company has suffered a downturn in circumstances it does not mean that the company is essentially weakened and if this is the case then Trading Out is probably the best option for that company.

Is Trading Out for your Business

The best advice would be to think about it honestly, be honest with your creditors and employees.
If your company is suffering from this kind of problem you have to consider if the company is really still viable and does it really have a future. Do you believe that it is money that is the only problem. Are you selling your product at the right price for your customers? Have you already done all the cut backs that you could possibly do, even if your company does pick up now do you have the future sorted out as you need to be thinking in the long term. Do you still have the customers and suppliers that you once had if not will they return. You should always seek the help and advice of professionals.

If you are sure that your company can rise again and that this cash flow problem can be sorted out and is just a temporary hitch, then you could try calling your main creditors explaining the situation and offer them a detailed account of how you shall pay them back over a period of time but make sure you are giving yourself ample time to do this. You should look at your debtors in detail, how many are due to pay up within the next 30 days, check to see when they think they will be able to pay but remember it does usually take them longer than they say it will.

You can always use the expertise of a professional turnaround practitioner to ensure that you are doing everything correctly and getting the best deal you can for your company. It should be noted that the turnaround practitioner will want to see that you have good planning for the future of your company and it will need to be planning that he also believes will work.

You should always keep precise records of your debtors and your creditors; this way there will be no doubts or confusion in any way.
What you should never do is leave it too late before you seek any kind of help, it’s too late if someone is going to take legal actions against you.