Business Finance for Struggling Companies

An injection of business finance is an essential for many companies to be able to survive in recessionary periods. Small companies may well only survive on a line of credit that covers their daily or weekly financial obligations. As payrol looms, will the firm be able to cover the bill without a trip to Vegas looking tempting to the financial controller. The line of credit from the bank is commonly essential to the continued running of the company and it's day to day operations. What do they do if the bank pulls the line? There are other options, although not necessary as palatable, such as factoring. But expensive. And in the event of default the small business is still liable.

A solution often overlooked is that of business finance through the turnaround finance industry. A company such as Beer and Young in London will select a wealthy business investor with experience in the business or industry of the troubled company. They'll invest the funds if they feel that the company has the fundamental model to be profitable. The success probability of this arrangement is usually high - with the expert taking a stake in the company and making needed objective changes for the good of the company and his investment.