What to do When Your Business is Financially Unstable

When you’ve worked hard day and night in an attempt to make your business a roaring success, it can be painful to admit, or even fully recognise, when things haven’t gone to plan.

If your business is in financial hardship, it can be difficult to know what the right thing to do is. 

It can be tempting to react emotionally and desperately do anything you can think of, after all, you’ve likely poured everything into your business. However, it’s important to consider your options; we’ll discuss some directions you can take to try and get back on track.

Look To Improve Efficiency

We know. It’s easy for us to essentially advise you to try and save money by improving efficiency, and it may feel like you’ve tried everything.

But did you know even the smallest changes can often have the biggest impact on efficiency?

For example:

  • Cut out unnecessary calls and emails

  • Ensure machines are running only when in use

  • Consider if you need to have every light on all of the time

  • Maintain machines regularly to avoid costly repairs down the line

It’s surprising how much money you can save for your business through seemingly pointless changes.

Consider Short-Term Funding

If you’ve exhausted your options when it comes to improving efficiency, it may be a good idea to consider short-term funding such as a commercial bridging loan.

Put simply, commercial bridging finance does exactly what it sounds like; it bridges the gap for situations in which you need funds quickly.
There are a variety of benefits to taking out a bridging loan, including the quick process from start to finish, which is ideal for when you need funds urgently.

Ensure Your Financial Records Are Accurate

According to Regpack, having a written record of all earnings and expenditures is essential to spot inconsistencies or habits you can change to maximize your earnings or lower your spending.

This can also benefit your business when applying for short-term funding.

Recognise The Cause

A key element of recovering from financial instability is recognising the cause of the downturn.

By doing this you’re ensuring you’re fully aware of the problem, meaning you’re in a much better place to tackle it.
At ASG Finance, we offer flexible finance solutions to UK businesses and are experts in our field. If you’d like to find out more about how we can help, please don’t hesitate to get in touch today.