DOES A COMPANY MAY GO WELL AND PLACE IN CONTEST OF CREDITORS? YES, CURRENT ISSUES AND BANK FINANCING. ARRIAGA PARTNERS, EXPERTS FINANCING AND REFINANCING FOR SMES CAN BE AVOIDED. ATTORNEY NOW ALSO IN ZARAGOZA. Reviewed by Momizat on .   WHY A COMPANY GOES WELL AND MAY END IN CONTEST OF CREDITORS? Financial institutions have cut funding and both have been so suspicious with their clients that   WHY A COMPANY GOES WELL AND MAY END IN CONTEST OF CREDITORS? Financial institutions have cut funding and both have been so suspicious with their clients that Rating: 0
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DOES A COMPANY MAY GO WELL AND PLACE IN CONTEST OF CREDITORS? YES, CURRENT ISSUES AND BANK FINANCING. ARRIAGA PARTNERS, EXPERTS FINANCING AND REFINANCING FOR SMES CAN BE AVOIDED. ATTORNEY NOW ALSO IN ZARAGOZA.

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WHY A COMPANY GOES WELL AND MAY END IN CONTEST OF CREDITORS?

Financial institutions have cut funding and both have been so suspicious with their clients that are systematically cutting the funding of working capital. We hear cases of SMEs with good levels of business profitability and liquidity problems and even solvency.

Any company can see that working capital financing needs of the working capital requirements, there is increasing because companies customers and suppliers companies have more cash flow problems. For example, customers increasingly demand that they fund. Even if that does not change the date of payment delay the delivery of the payment document. If the payment was 90 days to pay the invoice date, at this time do not usually send the note until it nears maturity. Reason ¿?, They do not know which bank will hold funds or because they do not want to give up not sure if they can answer the note. With suppliers something similar happens. As liquidity problems and risks, push for an advance payment and can set any maximum credit ceiling, which in practice must be paid before maturity to release new credit and reapply for more supply.

If we add the restriction of credit from financial institutions we find that more than a profitable company may be doomed to bankruptcy.

You have to devote much effort to put pressure on financial institutions that have lent money to the company to understand that if they do not increase the current financing company may be doomed to bankruptcy. Their natural tendency is to follow its general policy of reducing funding. When you have little money invested in SMEs can be displayed but when ruthless enough money already provided either are in favor of giving more funding unless they know “convincing”. Knowing is not easy to convince. You have to know pressure, negotiate and, at the same time, convincing data and reports, business plans, budgets, cash, etc..

Arriaga Associates is providing this service to SMEs. Arriaga Associates is an expert in dialogue with financial institutions to increase financing for working capital. There are success stories in this regard. In some cases it has increased funding of working capital, refinancing of long-term debt and an increase of the same, all to avoid a bankruptcy of a company with good business. We usually say, “better cow for milk for their meat, alimentémosla”.

Some financial institutions have already realized the risk they have if they do not help and have developed the concept of “Transactional Banking” as a section of the entity with which you get good customers do not fall into bankruptcy, and already step cost advantage to ask for more funding. Arriaga Associates can manage a line “umbrella” for circulating within this tendency of some financial institutions.

Associated Arriaga get their fees in these cases largely based on the objectives achieved.

Jesús María Ruiz de Arriaga

Economist, lawyer and consultant. Expert in finance and bankruptcy law.

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