EDITORIAL: February could be crunch time for business

By: Graham Gardiner


February is shaping up as the crunch time for many privately owned businesses. According to those who have been through

February is shaping up as the crunch time for many privately owned businesses. According to those who have been through the ups and downs of some of the fiercest economic cycles, the first quarter of the year is one to watch out for.

Why? Cashflow. With too many outgoings and not enough incomings, as the year slowly warms up, many businesses turn to refinancing as a way of getting through the period.

Unfortunately for many, this won’t be as simple.

Banks are taking a much closer look at your ability to return the favour, and as such, many on the periphery may be left out in the cold.

As many owners would know, there is a personal cost to the issue as well, with many businesses being tied up to the family home.

With this prospect hanging over the head of private companies, it could not be a better time to make sure your balance sheets are in order.

Or if you know there is trouble brewing internally, don’t leave it too late.

See your adviser, accountant or a specialist and treat the issues now.

As is the way many people are too embarrassed to swallow their pride and seek assistance, but with what are some of the most challenging of economic times here with us now, it might not be such a bad move.

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