After 35 years in business, the owner is now facing a cash flow hiccup and is wondering where to turn to. He writes:
My Business H. Delahunt Pty Ltd requires additional finance.
It is in existence for 35 years and because of a forced move of premises and late shipment last year we now have a cash flow problem.
Standard Bank has approved R1.5m but I think their costs are expensive. Can you suggest other companies for finance?
Business development consultant Anton Ressel responds:
My first suggestion would be to approach the other banks and see if they can better the offer from Standard Bank - loyalty to a bank is only justified if they are also giving you a good deal.
You could consider selling a small stake in the business to raise the capital as well, or approach the existing shareholders and see if they could not raise the necessary working capital between themselves at a more favourable rate?