EXPERIENCING BUSINESS FINANCIAL PROBLEMS?

There are key indicators that a business may be facing financial problems. Identifying areas of concern does not, in itself, mean that your business is insolvent or in financial trouble. However, it should be a catalyst for you to explore areas where timely intervention can help prevent your business failure. Often, problems that may ultimately cause business insolvency can be detected well before a financial debt crisis. If danger signs are identified in time, BDO Newmarket can identify viable debt solutions to turnaround the business. Warning signs that your company may be in financial trouble include:

• A sudden inventory build-up or decline in inventory turnover rate
• A sharp downturn in accounts receivable turnover rate
• A rapid rise in debt-to-equity ratio
• Your lender refuses your loan request, reduces or eliminates your operating line or has started to return cheques
• Several suppliers change their terms with you to COD
• Your accounting records are not up-to date or you are not able to satisfy your lender’s financial information requests
• Creditors are sending warning letters, statements of claim or are obtaining judgments
• You are stretching payables to preserve cash
• You are regularly late in filing tax remittances (employee source deductions, GST/HST, provincial sales tax)
• There is high employee turnover in the accounting department
• Your bank moves your account from your local branch to a loan recovery unit (“special loans”)

Confidential, complimentary financial consultation to review your business debt problems

The important point for Newmarket business owners to keep in mind is to resist the temptation to take on additional debt until you have first analyzed the causes of the business’ financial challenges. Seeking professional help in times of financial trouble is too often frequently dismissed as an unaffordable cost— yet it is often the best investment you can make to bring a business back to financial success. Our Chartered Insolvency and Restructuring Professionals (CIRP) can review your company’s challenges from both operational and financial perspectives and make suggestions for improvement, working with you to prepare a comprehensive action plan.

Options for dealing with business financial problems

Ways BDO Newmarket can help address your business debt problems include:

• Cash flow management and forecasting
• Communication with lenders and tax authorities
• Debt restructuring and refinancing – introducing new or additional sources of financing
• Business viability, operational, and loan security reviews
• Strategic planning
• Management support through accredited turnaround professionals
• Liquidity investigations and cash crisis management
• Disposal or closing down of subsidiaries or divisions
• Expert testimony on insolvency issues, financial damages, and valuations
• Full forensic investigations for commercial fraud and asset tracing, as well as hidden assets location
• Formal insolvency and restructuring under the Bankruptcy and Insolvency Act
• Corporate windups

To arrange a complimentary, no obligation consultation to review your business challenges and help get your business back on track, contact BDO Newmarket.