Second Wind Cash Flow Proforma
Here is a template of a cash flow proforma that we regularly use when analyzing client cash flows. We hope it can prove to be helpful for you and your business.
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In the years leading up to the 2008 financial crisis, small business owners had a consistent source of short term capital, their home equity. Rapidly rising house prices allowed them to borrow against their homes and put the money into their company to buy more inventory, fulfill a purchase order, hire more employees, etc.
Then things changed. The 2008 financial crisis crippled home equity nationwide and tightened lending standards. Business owners in desperate ...Continue Reading →
In the world of SBA collection, there exists a name that inspires fear in debtors far and wide. If a lender is having trouble collecting, they tell a borrower they will send the matter off for collection in the “Treasury,” using the name like some taboo character parents use to scare children into behaving properly.
The federal government guarantees SBA debts in the event of default and, like all federally supported obligations, defaulted ...Continue Reading →
An SBA loan is a loan to a small business that otherwise would not qualify for a loan through regular business lenders. The small business receives the funds because the lender’s risk gets mitigated by the Small Business Administration’s guarantee. If your loan goes into default, the government will cover the losses of the lender up to 90%. A great program to get our economy stimulated and likely responsible for the creation of ...Continue Reading →
When faced with reduced revenues, increased overhead, and other market forces that put pressure on the cash flow of small businesses, many owners liquidate their personal assets and invest them into their business. They liquidate stock accounts, cash savings, sell other assets to raise cash, and even forego a paycheck. It is their passion and their determination that leads them to believe that they will get that returned money and more once ...Continue Reading →
When a business enters into payment default and ultimately into a debt workout with its SBA lender, the SBA, and the bank often take legal action against both the borrower and guarantor on the loan. The lender will sue for breach of contract and pursue a judgment as the initial steps in foreclosure of the business and its assets. Judgments are awarded to creditors once they have sued a business and proven to ...Continue Reading →
Running a business requires a business owner to wear many hats and display many skills. They must be involved in areas such as sales, marketing, managing their workforce, managing customer relationships, and leading their business to success through astute financial practices. As described in our book Successfully Navigating the Downturn, there are four pillars to success that all business owners must be sufficient in. They are Management by ...Continue Reading →
So you’ve settled all of your debts, paid off your creditors (some for pennies on the dollar), and now you’re able to walk away and completely put your debt issues behind you, right? Not so fast! Debt cancellation income or income from debt forgiveness is something that must be analyzed early on before you begin a debt settlement negotiation.
Many people don’t realize when they settle an outstanding debt, and the creditor ...Continue Reading →
In every workout that I’ve been involved with, there nothing that elicits a stronger emotional reaction more than the threat of losing one’s home in a default.
Let’s face it, if you are a small business owner that has received SBA guaranteed financing, the chances are that the lending bank, in conjunction with the SBA, required you to voluntarily provide them a “deed of trust” or a mortgage filing ...Continue Reading →
This is the question clients ask us every day. Almost every borrower wants to pay their bills, but when financial disaster strikes, it is not always possible to fully repay your debts when you are forced to close your business and walk away. Luckily the SBA has a particular program, designed for borrowers looking to avoid bankruptcy and make a good faith settlement with their lender.
Clients ...Continue Reading →