Securing more time from lenders and the taxman

Isabel's financial advisor asked us to talk to her about the financial difficulties of her cleaning business. There was a sound business there and the advisor had been seeking to raise equity funding.

However, the business was expanding rapidly following a management buy-out and clearly overtrading such that management and finances were stretched. The bank and its factoring arm were concerned and there were extended arrears in PAYE debts. The advisor was therefore concerned that he would not have the time to do his work and asked us to help negotiate the patience of these stakeholders.

A review that faced the issues

We conducted a business review that focussed directly on the immediate issues facing the business and the stakeholders. We identified that if the company were to fail at this critical time, then it was unlikely that either would achieve any significant recovery.

Successful outcome

We were able to demonstrate that on the other hand, there were real prospects of finding additional finance. We were able to bring our reputation to bear with these parties who were prepared to be more tolerant. Shortly afterwards, the advisor and Isabel were able to raise the necessary finance.