Insolvency – don’t be part of next months statistics
With the February 2009 Insolvency Statistics hot off the press from ASIC, we are all reminded of the consequences of poor cash flow management.
As the new Business Development Manager for AR Cash Flow, it frustrates me to see these figures – as a downturn in the economy is often a great opportunity for growth. Companies such as Oracle and Dell have proved in the past that it is possible to gain a huge competitive advantage by implementing the right strategy in a downturn.
In NSW alone, February saw 348 companies go into external administration, up from a massive 216 in January*.
How many of these companies could have been saved by examining their cash flow options? How many could have increased their capacity by having a source of readily available funds?
It is also interesting to note that whilst large companies are often provided with a myriad of advice and options, smaller businesses are left by the wayside.
Credit lines are tight for all firms at the moment, making it exceptionally hard for small to medium businesses to stay solvent. Factoring and Debtor Finance may just be the life ring needed for these businesses to stay afloat.
*You can view the full 2009 Insolvency statistics on the ASIC website:
Article By: Larissa Solomon email: [email protected]