Wolves At The Door

In these tough economic times, it is often a mission to keep your business running. At some or other time we all experience the feeling of mild to severe panic when the end of the month is nearing and there just is not enough revenue to cover all the overheads.

Creditors are at the door with their demands: and debtors are full of excuses. Projects are coming in, possible contracts are about to be signed or negotiated. Possibilities are there, but there is just not enough in the bank to cover the overheads.

This is the best time to contact a Rescue Practitioner. By applying to go under business rescue, buys you some operating room. The Rescuer is then able to look at your income and expenditures, projects or contracts which are in the pipeline, and draw up a workable Plan. This is presented to the creditors and all interested parties and they get to vote on whether the Plan is acceptable or not.

The whole idea of business rescue is to negotiate with the suppliers and creditors of the business, to extend the repayment terms so that the business can continue to operate.

Ideally, the debts should be caught up within six months, after which the company is able to withdraw from the rescue process and proceed as usual. This is often, however, not the case, and might take a bit longer for the business to be back on its feet.

It is still preferable to the hard route of liquidation, where the company, employees and creditors all lose.

It must be noted, that the Rescuer has to be impartial, he is there to the benefit of all involved. Thus he will look at all possibilities for the best outcome for the business as well as the creditors and the employees.