4R Business Recovery Underline James Caan's Comments on Cash Flow

Online, December 21, 2012 (Newswire.com) - 4R Business Recovery, a company offering corporate insolvency advice, has found common ground with James Caan after his recent article on cash flow. Mr Caan, most famous as a former investor on Dragons' Den, posted the article on social networking site LinkedIn. He wrote about the importance of cash flow in business and criticised companies who focused on strategy and marketing instead of the bottom line.

He also mentioned that many businesses go into administration every year because cash flow is poor. 4R is a company that strives to rescue businesses suffering from the results of poor cash flow, and deals with companies facing creditor pressure and insolvency every day. In almost every case, poor cash flow is to blame for companies entering receivership, liquidation and administration. Managing Director Kevin Pritchard welcomed Caan's article as it called for directors to focus on what is really important:

"What James is underlining is the fundamental need for business owners to develop what I call 'financial intelligence' in terms of their business model. Yes, it is important that they understand how to find and sell products and services to customers, but so often the cash flow is a consequence of other decisions rather than at the heart of their business strategy. We emphasis to our clients that how the business generates cash flow and how it protects itself from cash flow risk has to be at the centre of their business model and in fact the cash flow model should dictate other areas of the business such as customer acquisition, market share, and sales and investment. So many small to medium sized enterprises still have not taken on board the whole 'busy fools' concept and focus on sales while ignoring the impact of credit risk, stock holding and work in progress, and the working capital needs of the business. In fact, taking on new orders that cannot be funded is a key factor in causing business failure; the key is to understand the cash flow model and its constraints, work the model hard and keep growth within the cash flow constraints of the business."

However, while Caan's focus on cash flow is absolutely correct, circumstances beyond the directors' control sometimes force a company into insolvency. The financial crisis has had a serious impact on businesses, and unpaid debts and creditor pressures take their toll. Even if a company is already insolvent, there are measures which can be taken to improve cash flow and remedy the situation. 4R endeavour to rescue at-risk businesses using procedures such as Company Voluntary Arrangements (CVAs), Creditor's Voluntary Liquidation (CVL) and Pre-Pack Administration.

If the company can't be saved in its current form, a new Phoenix Company can sometimes be created using the assets of the old one. In some cases, bad debts and financial pressures make the winding up of a business inevitable, but even in these circumstances 4R can help find the best solution and make sure directors aren't personally liable for any debts.

Company Profile:

4R Business Recovery has been changing the fortunes of failing businesses since 2010, and has worked with companies of all sizes in both England and Wales. Insolvency and creditor pressure can lead to stress and sleepless nights, but 4R's experts are there to help turn things around. Rather than just focus on the immediate situation, 4R works to create wealth in the long term for business owners and their families.

Contact details:
Kevin Pritchard
Managing Director
4R Business Recovery
1st Floor, Gateway House, Penman Way
Grove Business Park, Enderby
Leicester
United Kingdom
LE19 1SY
Telephone: 0800 9020123
Email: [email protected]
http://www.4rbusinessrecovery.co.uk/
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