Informal Deals Checklist
In dealing with an Underperforming company there is a simple principle: Cash is King.
If cash is not managed then it is easy to slide down the Restructuring Spectrum to Financial Distress or even Insolvency. So an excellent place to start your improvement initiative is to “push out” your creditors.
Merely calling the key creditors and explaining the position can work wonders. But do not do this without a planned approach. You must:
- Build a daily cashflow, if you cannot write spreadsheets use a simple form on a sheet of paper, but update every figure as you go.
- Do not over promise. If it looks like you can pay all key creditors in 30-60 days ask for 60-90 days. Creditors will usually be happy to work with you if you are honest.
- Do not break deals. But if it is unavoidable, write and call the creditors and explain carefully where the plan has not worked.
At Restructuring Works we are experienced in dealing with creditors including the Tax Office. So if it is all getting a bit too hard why not CALL US NOW for CONFIDENTIAL FREE ADVICE and let one of our consultants talk you through your options.