Help on way for struggling firms
Businessrecovery specialist launches new service
SCOTTISH businessrecovery and turnaround specialist Invocas Financial said yesterday it had launched a new service to help struggling firms to get back on their feet.
It will provide access to business advisers and, if necessary, help with funding through the likes of business angels and private investors.
Edinburghbased Invocas said it had started the service in response to growing numbers of SMEs (smaller businesses) which found themselves unable to cope in the current economic climate.
Group development director John Hall said the new initiative offered an opportunity to firms in difficulty by offering a realistic alternative to administration or other insolvency proceedings.
He said: "Our hope is that our proposition will play a significant role in assisting parts of Scotland’s SME community pick up momentum again so that they can help to drive the country’s economic recovery."
"Relatively few SME leaders will have experienced anything like the current climate, so if they’ve run into difficulties we will be able to give them the skill sets they need to manage through the downturn. We have a lot of experience in the recovery and turnaround arena."
"We’re now able to combine that with tailored advice directly relevant to the client’s business, and access to funding where necessary, so we’re very confident we’ll be able to help a lot of companies overcome their difficulties."
The company is looking to target SMEs with annual turnover of between £2million and £15million.
Mr Hall said: "A lack of liquidity is one of the major causes of financial problems among SMEs, and the traditional lender relationships with banks have changed because its much harder to recapitalise an ailing business."
Andy Willox, Scottish policy convener at the Federation of Small Businesses, said: "There is no doubt that cash flow and liquidity remain the key issues facing many small businesses."
"What initiatives of this sort demonstrate, though, is that there is a real gap in the market for impartial, onetoone businesssupport services."
"While this sort of governmentbacked support is available to a select few companies at the top end of the market, many of our members find it hard to access and we will continue to press the Scottish Government to ensure that small businesses get a fair deal and get the advice and help they need."
