It’s not uncommon for businesses both large and small to suffer from short term cash problems. They might be a profitable business, but if you can’t pay your bills you are not going to be the flavour of the month with your lenders or your creditors. Running out of money can do serious damage to your credibility and the survivability of your business.

Keeping an eye on your cash flow and understanding the pinch points which can hurt it is essential for all managers. But, sometimes, it doesn’t matter how well prepared you are a cash squeeze can come knocking.

What are your options? Debt Refinancing

Every business is different. The options open to that business will be dependant on many other factors both internal and external. Businesses can consider refinancing also known as debt consolidation, the business can net together its various existing business loans from its lenders and apply for commercial loan to refinance its working capital operations. The advantage would be that the the commercial loans interest rate could be considerably lower. If a business had access to any fixed assets including property, it could also consider releasing equity from the assets by way of a commercial mortgage.

Any debt consolidation would be dependant upon satisfactory credit, but it could give the business viable space to increase their working capital and service its creditors. The effective savings generated from such an approach could be considerable and allow the business to pay off the principal loan amount much quicker.