Stabilizing Cash Flow
All companies can improve their short term cash flow and most companies can improve cash flow over the long-term by changing their capital structure. In a turnaround situation, where the needs are more near-term, there are proven methods that have a substantial effect on working capital and the ability to project and manage cash flow. Execution of cash flow maximization techniques demands experience, talent and time.
One of the first places many businesses turn to is stretching their Trade Accounts Payable but this is a very risky proposition. There is an “art” to negotiating with vendors and if done incorrectly, they could block a proposed restructuring to the secured debt or force a bankruptcy. The KGI System™ has a very specific methodology which involves successfully working with trade creditors to provide much needed liquidity.
Receiving an over-advance or additional borrowings from the lender, or other constituents, is an excellent source for additional funds. Please see Debt Restructuring for more information on the particular circumstances and the services we provide.
Most businesses believe they are effectively managing Accounts Receivable. KGI's decades of experience shows that this couldn't be further from the truth. We find significant, missed opportunities in almost every situation and guide companies to maximize the flow of funds.
Our experience has shown that Inventory and Supply Chain Management is another untapped treasure chest. In addition to clearing out slow and excess inventory, our firm is uniquely positioned to provide LEAN and Six Sigma experts who can significantly reduce the amount of inventory a business thinks it requires, thereby freeing-up cash.