BUSINESS FINANCING SMES IN TIMES OF CRISIS. Is there any chance of financing or refinancing of a company in difficulty? Is it possible to avoid bankruptcy? How can you get owners to avoid having to compromise their personal wealth?. Lawyers, economists experts. Now also in ZARAGOZA, in Spain. Reviewed by Momizat on . OPPORTUNITY financing or refinancing A COMPANY IN CRISIS My personal experience in recent years as a consultant advising SMEs outside to get: • The funding need OPPORTUNITY financing or refinancing A COMPANY IN CRISIS My personal experience in recent years as a consultant advising SMEs outside to get: • The funding need Rating: 0
Inicio » Blog Arriaga Asociados » BUSINESS FINANCING SMES IN TIMES OF CRISIS. Is there any chance of financing or refinancing of a company in difficulty? Is it possible to avoid bankruptcy? How can you get owners to avoid having to compromise their personal wealth?. Lawyers, economists experts. Now also in ZARAGOZA, in Spain.

BUSINESS FINANCING SMES IN TIMES OF CRISIS. Is there any chance of financing or refinancing of a company in difficulty? Is it possible to avoid bankruptcy? How can you get owners to avoid having to compromise their personal wealth?. Lawyers, economists experts. Now also in ZARAGOZA, in Spain.

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OPPORTUNITY financing or refinancing A COMPANY IN CRISIS

My personal experience in recent years as a consultant advising SMEs outside to get:

• The funding need
• To ensure that banks continue to support the project
• To prevent companies falling into bankruptcy

Has led me to think about the importance of redefining the company’s financial department and reformulate strategies renegotiation within the company and outside the company, both with banks and with customers and suppliers.

In times of crisis, especially the financial crisis, it is imperative that the company acts in a different way and develop strategies for financing and refinancing. In times of financial crisis the company should be proactive rather than reactive, being a strategic financial aspect of the company. Without a doubt, at least in SMEs, external consultants are needed in corporate refinancing act with a view general direction. Is the crucial part of the business right now and should be treated as a priority.

So far the financial management of the companies was focused on accounting, management fees and payments in the short-term treasury and taxes. In an environment of easy credit, with this nearly enough. In larger enterprises it is not but it was more common in SMEs.

Aspects such as bank financing, negotiating strategies with banks, customers and suppliers, financial relationships with business strategy, management coordination with other areas of the company, often forgotten or simply not needed. SMEs in the accounts or finance department was a department in which the property normally delegated and took second place and was quite tight for other business activities and directly controlled by the management or ownership, by their owners.

When banks begin to close the tap, to reduce or not renew the credit accounts no longer provide loans, the situation changes drastically. They begin to have financial problems and many companies into crisis despite the existence of good business prospects.

As a result of this many businesses need support from their owners and they have to put more money or meet an obligation to endorse with their present and future.

Some companies do not survive with that and begin to go bankrupt, that is in bankruptcy. There are many causes leading to the bankruptcy but certainly the lack of funding is behind most of the bankruptcy proceedings.

What to do? Well, as said earlier, to redefine the financial department, should develop a funding strategy, we must work in coordination with the other business areas, we must integrate into the process for banks, customers and suppliers. You have to have outside consultants and experts refinancing experts in business management so they can offer an approach from general management, from strategic direction. Lawyers bankruptcy proceedings are also essential.

In these times when financial problems gripping the business, financial management is at the core, where there should be a good plan that anticipates events, with a very proactive approach to avoid the consequences that involve compromising the heritage of their owners, to avoid bankruptcy and, ultimately, to save all that make up the company: owners, employees, customers, suppliers, creditors, and why not say, society.

 Jesús  María Ruiz de Arriaga Remírez. Economist lawyer, an expert on bank refinancing and bankruptcy law.

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