You will be seeing increasing costs in every area of your expenditure. If it is not already happening, there will be calls for wage increases from your staff who will be struggling to meet their increased costs. Margin erosion and subsequent pressure on cashflow is inevitable.
Can you mitigate these increases by increasing your prices without impacting sales? Talk of an impending recession has led to two consecutive months of falling GDP so the answer is probably not.
Add to this gloomy picture the fact that the cost of borrowing is not expected to come back down anytime soon and more likely to increase and the rest of this year and next is already looking at being the most challenging for decades.
If you are already seeing any of the above in your business and if you are dipping into an overdraft facility to support cashflow earlier in the month than you previously were, then we urge you to act now.
Talk to us immediately as delay will only make matters worse. SKS Business Services will work with you and, if they feel additional assistance is required, will call on our colleagues in SKSi to look at whether some form of restructuring or refinancing would assist in keeping your business financially viable.
Unlike many insolvency practitioners, the directors of SKSi look at a formal insolvency process as the last resort – not the first. It is their long-held belief – borne out with proven experience – that seeking advice at the first sign of financial pressures will lead to a more favourable outcome.