Wednesday, October 11, 2006

Cash Flow And The Quick Fix

Often, companies approached Cashwerks looking for an instant solution to their cash flow problems. The Directors proclaimed their own solution and demanded the Quick Fix. They were reluctant to talk about the company’s business, its future growth, the effectiveness of the funding or even the cost of the funding.

Fixated on their solution to a perceived problem, they turned defensive when told the Due Diligence requirements of the funding source.

Predictably, these deals failed and the encounter was somewhat childish. There was no solution to a multi-layered problem and if there was, it was probably wrong or deficient.

Months later, Cashwerks would be contacted again by the same company. This time, there was panic in the Directors’ voices. The company was going under, the banks had turned hostile. The company was now ready to listen.

After the deal had gone through, the Directors quietly admitted they should have listened and acted months earlier.

© 2006 Sanjeev Aaron Williams & Cashwerks All Rights Reserved

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