Article: Business Times Northampton

The following article appeared in the Northampton Business Times of 17 March 2008:

"Financial distress through to Business Finance in the SME sector"

There are few things that are more challenging for entrepreneurs than constantly having to engage in financial ‘fire fighting’. A company with cash flow problems will be juggling every cheque it receives in an effort to stay within the overdraft limit, pay its creditors, maintain supply, and on top of all this pay overheads and salaries. As well as being extremely stressful, this distracts SME business owners from the really important issue of keeping the customers happy – getting products out the door or delivering the services that they should be.

There are many businesses that find themselves in this situation but simply haven’t got the appropriate skills to deal with this level of distress. This is not a criticism, directors don’t plan for the company to ‘hit a financial brick wall’, but will often leave it very late before seeking the help that is available.

The good news is that there are some well established specialist firms, like Beer & Young Limited (established 1998), who can provide robust recovery solutions, which will often include the support of ‘business angel’ investment. This presents distressed businesses with an opportunity to recover with the benefit of an experienced entrepreneur who will also make a financial commitment. This is viewed as less risky by many investors as they see troubled businesses have been successful in the past, and with the injection of some fresh capital and expertise they can be successful again.

The key is to try and stay in control of the situation and seek help quickly. Major stakeholders (including banks and HMRC) are supportive of sensible recovery plans based on sound professional advice.

Please see the Beer & Young website: www.beerandyoung.com/case-studies.php for case studies and testimonials. They can also be contacted direct on 0207 329 6886.