Failing to secure funding to acquire new screens would have hampered the company’s growth and put pressure on management to raise more equity or re-negotiate their covenants, often a lengthy and stressful process.
Many businesses face very similar challenges, most commonly, accessing funds, to boost revenues and grow. Those that are unable to meet the challenge, stay stagnant or worse still, close down altogether.
Inadequate cash flow / high cash use, and poor strategic management have consistently been the top two causes of business failure over recent years, according to insolvency statistics from the Australian Securities and Investments Commission.
Although the number of Australian businesses closing down has begun to reduce, there were 1,817 businesses that went into external administration in the six months leading up to December 2016. Could this have all been avoided if operators had sought out alternative forms of finance?
Of course, not all businesses would have been able to avoid closing down. There are a myriad of reasons why a company decides to close, but the fact of the matter is many businesses aren’t aware of the options available to them or have been turned down before and are now twice as shy to pursue alternatives.
Whether you work in health, manufacturing, agriculture or even energy, it doesn’t matter. If you have assets that need to be funded, no matter how unusual, come and speak to us, it may just help your business thrive, not just survive.