Business risk warning signs

Author: Henry Shinners, James Kirk (yBC.tv)

Categories: Business risk, Cash flow, Restructuring & Recovery
Tags: Business failure, credit, overdraft, warning signs
Business risk can hit at any time and companies can survive small unexpected losses. But constant problems may be a sign that failure is imminent, as Henry Shinners discusses in this TV show.

Business risk: Early signs of impending doom

There are some early warning sighs. Typically business will operating with an overdraft facility, or some other kind of working capital facility. If they find that they are constantly at the limit of that, and there’s no fluctuation, they can return into credit for example from time to time, then that’s a good sign that working capital is a problem and they need to address that. Other signs would be if they have competitors in the same sector that are failing. That can be a positive thing for some businesses because they pick up business that their competitors aren’t doing, but it may also be a sign that the sector is in difficulty and they need to take care.

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