You would like to... Turn around your company's financial situation

This situation is never desirable, and is often a critical event requiring swift action. However, it's important to identify the reasons for this situation, and there can be many. These may include strong growth, difficulties in recovering sales, or the need to take immediate action. cash spent on capital purchases, lower sales, poor inventory management, accounts payable, etc.

A turnaround therefore involves increasing liquidity through cash injections or refinancing. However, before refinancing, lenders will want to be reassured, and will usually demand that the causes be properly identified, that a structured recovery plan be put in place, and even, on occasion, that the company's balance sheet be reviewed. model business.

Depending on the reasons for this financial crisis, a multitude of actions can be taken to rectify the situation:

• Review the cost structure and reduce the company's expenses (administrative, production, delivery or service expenses).
• Review your positioning in the current market by asking your customers about their needs and their perception of your company, your products, your prices, your service, and so on. This will enable you to target what makes you valuable in the eyes of your customers, and consequently indispensable and unavoidable.
• Find a way to stand out from your competitors 

These reflections and the actions to be taken may also lead to a major shift in your company's direction, such as opening up the shareholder base, selling or merging, or partnering with a supplier or distributor.

Above all, don't be left alone with your problem: discuss it with your accountant. Draw up a recovery plan with him/her, and when this is satisfactory, present it to your financial institution to reassure it and obtain its support. Our SADC can help you analyze your situation and find the appropriate financing.See the list of financial products and services on the right. Don't hesitate to contact SADC today.