10th November 2020

Lynn-Marie Jameson on how we can help in a turnaround situation

As part of developing our package of measures to help turnaround struggling businesses, we caught up with Lynn-Marie Jameson of Optimum Finance, to find out how they can support companies that are experiencing problems.

There is no doubt that in the current climate there are business who have had to formulate a turnaround plan. Many of our team have been involved in these types of discussions with our clients, their customers and our prospective clients. We have been working closely with management teams to help structure a way to support them through difficult trading positions.

As long as there is open dialogue with any SME and we are able to see a clear route to get back on track, it makes it an easy decision to support a business. Being open about the changes you are making in the business with your key stakeholders such as suppliers, customers and staff, will help make the turnaround process much smoother.

Due to HMRC deferring their VAT payments and the government providing even more funding, we are yet to see the real impact that the last 9 months will have had. We do know, however, that many businesses will require support in the form of working capital once the payments of these facilities are due.

In order to maximise the cash available to businesses, we always look at the opportunities within a company to improve their margins. Is your pricing fit for purpose in this current market? Have your costs increased? If so, can you reduce them or pass them on? 

Having a clear vision of your cash requirements over the short and medium term is hugely important when looking for funding. This helps demonstrate that you are on top of your costs and know what you need to get you through. Be realistic with your sales forecasts and plan for the worst-case scenario. 

We are supporting businesses through these tough times and are absolutely open to supporting more.