Business owners who resumed operations after months of restrictions or closure due to COVID-19 lockdowns only to face decreased demand from customers may now be on the verge of serious financial crisis, according to a Scottsdale-based business advisory firm.
Resolute Commercial Services provides step-by-step process for managing financial troubles resulting from COVID-19 pandemic
Media Contact: Jessica Gonzalez
SCOTTSDALE, Ariz. – Oct. 6, 2020 – Business owners who resumed operations after months of restrictions or closure due to COVID-19 lockdowns only to face decreased demand from customers may now be on the verge of serious financial crisis, according to a Scottsdale-based business advisory firm.
That’s why Resolute Commercial Services is providing free copies of its booklet “The 4-Step Guide to Your Financial Crisis Action Plan” to business owners that have been hit hard by the COVID-19 pandemic.
Delaying payments for goods and services is a telltale sign of a business that could be facing survival-threatening troubles – which is one of many insights available free to business owners who download the booklet.
“Even if you’re ramping your business back up, when you’re making payments for trade payables stretching beyond 30 days, you are essentially using your vendors as the bank,” says Jeremiah Foster, president and founder of Resolute. “But there’s still hope for most businesses, if they have the proper tools to secure their finances.”
Foster estimates 30% to 40% of small businesses in industries highly impacted by COVID-19 have gone inactive since February, and they may never return.
Staff members at Resolute, which was founded in 2008, have decades of experience diagnosing and resolving businesses’ financial challenges through a practical and straightforward approach.
Businesses facing financial difficulties should begin crisis planning or looking for outside help right away, according to Foster. This gives the company the best chance at survival, especially during the difficult financial downturn businesses find themselves in now.
Bankruptcy filings for companies worth at least $1 million increased 125% in Arizona during the first two quarters of 2020, compared to 2019. More than 80% of attorneys and lenders surveyed by Resolute believe the market won’t stabilize until a solution for COVID-19 is found.
Among other tips in the free financial crisis planning booklet, Foster recommends several steps when a business begins to find itself in financial trouble:
- Calculate Your Financial Position – Determine how much cash you have on hand, plan what you will need to meet your financial obligations over the next two to three months and to the best of your ability create a realistic estimate of how much cash will come in through sales or accounts receivable.
- Extend Payables – Work with your vendors and lenders to defer or extend payments wherever possible.
- Communicate – communicate early and openly with your lender about the challenges you are facing and your plans to overcome them.
The full crisis plan from Resolute includes a step by step guide to increasing liquidity, managing costs, communicating with employees, suppliers, lenders and customers, and creating a continuity plan for working through the remainder of the pandemic.
To download the full crisis plan, visit https://resolutecommercial.com/the-4-step-guide-to-your-financial-crisis-action-plan/.
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About Resolute Commercial Services
Resolute is an independent business advisory firm focused on diagnosing and resolving the challenging issues impacting middle market companies. Founded in 2008, Resolute provides solution-oriented fiduciary, financial, business, and real estate advisory services to financial institutions, corporations, law firms, state and federal courts, and trustees across the country to maximize value.
To date, Resolute has provided services in 33 states, with a strong presence in the Southwest and Mountain West regions. Its experienced staff has managed over $1 billion in distressed assets and sold more than 75 assets/enterprises with a total value of more than $250 million. For more information, visit resolutecommercial.com.