South West specialist corporate
finance advisory company Shaw & Co has unveiled a revamped service designed
to enable businesses to improve cash flow.
With the Covid-19 pandemic and
subsequent lockdown having tremendous impact on businesses, Shaw & Co is
inviting companies to take advantage of a free online Credit Suitability check
to assess capacity for debt or working capital facilities.
Changing consumer behaviour and
social distancing measurers mean that businesses face reduced revenue and a
lower demand for goods and services. At the same time, the costs of being open
for business may only be partially adjustable, whilst competition remains
In addition, business owners
may not grasp the importance of this trend and may not be doing enough to adapt
their business model accordingly.
Recognising the emerging trends
and triggers of cash flow problems and making important and timely changes to
business operations can help save companies from collapse.
As part of this process, Shaw
& Co’s cash flow improvement service is specifically designed for
owner-managed SMEs in the UK that are facing cash flow problems and need at
least £1million of working capital to stabilise their business.
Shaw & Co’s free online
Credit Suitability Survey allows business owners to identify if they will be
suitable for an injection of working capital.
The economic shock (for
instance, the lockdown) is only one of eight most common issues that can cause
cash flow problems; these include, temporary cash shortage; regular working
capital shortage; overtrading; turnover underperforming forecast; need of short
term capital to fund growth; inappropriate capital structures; and financial
Alexei Garan, Head of Debt Advisory at Shaw & Co, said, “Managing cash flow effectively is an integral part of any business. The economic impact caused by the coronavirus pandemic has demonstrated how unprepared some businesses were to deal with large scale and prolonged cash flow challenges. Government loan schemes have provided some degree of cushioning however, we expect a ‘second spike’ of cash flow issues to come to the fore in the second half of 2020 and into 2021.
“It is vital that businesses
are fully aware of their cash flow position and how critical it is for
companies to address this issue. Failure to do so, is likely to increase the
risk of potential failure and ultimately corporate bankruptcy.
and addressing cash flow issues will undoubtedly involve making prompt changes
to your operations, ensuring better collaboration across your organisation or
adjusting your sales and marketing strategy to become more competitive.”
the Shaw & Co website for more
Pictured: Alexei Garan