If your business is under financial pressure, it’s important that you act as quickly as possible to avoid being subject to legal action by a creditor.
Even the best businesses can run into financial difficulties. If your business loses a key source of revenue, has an unforeseen expense or suffers from any other kind of setback, you may find yourself in a position where paying your creditors is difficult.
Turnaround finance is a type of financing intended for financially distressed businesses that are unable to raise money from traditional banks or finance providers.
If your business is in a difficult financial situation, using turnaround finance may allow you to pay creditors and avoid becoming insolvent, allowing your business to continue trading and work on a financial recovery.
As insolvency specialists, we work with a range of UK-based turnaround financing providers and can help connect your business to funding options. For more information, contact us on 0800 9717185 or via email to schedule a free, private consultation or continue reading below.
Turnaround finance, or turnaround capital, is a form of financing intended for businesses that are in financial distress.
Not all businesses can access traditional financing options such as bank loans. Lack of direct access to financing is a particularly common problem for SMEs, particularly small businesses with stretched working capital.
A turnaround financier, or funder, can provide capital for your business when it needs it most, such as when it’s facing significant financial or legal pressure.
Unlike conventional finance, turnaround finance isn’t intended to fuel your business’s growth and development. Instead, it’s intended as a short-term form of financing that you can use to pay creditors, relieve financial pressure and facilitate a business turnaround.
Providing turnaround finance to a financially distressed business involves a significant amount of risk. As a result of this, many financing providers are selective about the businesses they’re willing to work with. To access turnaround financing, your business generally needs to be:
No two businesses are identical, meaning the best option for your business is likely different from that of another business. As such, we recommend contacting our team to discuss your business and learn more about the financing and recovery solutions that are available.
Several different types of turnaround financing are available for businesses. Depending on the type of business you operate, its cash flow and its current financial state, one financing option may be a better option for you than others. Common forms of turnaround finance include:
Turnaround financing is a very specialised field and finance providers often have highly specific requirements. As such, some forms of turnaround financing may be available or unavailable for your business based on its industry, cash flow, financial state and other factors.
For more information on the options listed above and other forms of turnaround finance, contact us to talk to our team.
Turnaround finance can be a helpful tool for ending creditor pressure and moving your business towards a financial recovery. However, it’s not the only option available. Other solutions for your business may include:
It’s important to act quickly if your business is in financial distress, especially if you’ve received a statutory demand letter or winding up petition from a creditor.
As specialists in insolvency and business recovery, we’ve helped hundreds of UK businesses to obtain emergency turnaround financing. Our clients include both small and large companies in a diverse range of industries.
If your business is a suitable option for turnaround financing, we can refer you to private lenders and turnaround financing providers that can help your business access the cash it needs to pay creditors and work towards financial recovery.
If you think that turnaround financing may be an option for your business, contact us on 0800 9717185 or send us an email to schedule your free private consultation with our team.
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