Why companies in a recession may need an injection of business finance

In the case of recession, the companies are not able to enjoy the break even in their business, which they were earlier making. Therefore, in this type of a scenario, there is an imbalance in their break even as the revenues drop and the cost is not manageable. The balance sheet shows more expenses incurred than the profits made. As a result, it is advisable for these companies to cut down on their expenses, costs which include stopping such things as stationary supply, long distance trips, vouchers etc. In this situation, cost management plays an important role for further growth and prosperity.