Why use The Back Office
As the graph depicts, individuals and companies in South Africa over the last 6.5 years have undergone 41 818 Liquidations, Insolvencies or have been placed into Business Rescue. This comes at a great cost to shareholders and stakeholders and has a negative impact on the growth of the company as well as the economy, especially if risk mitigation steps have not been taken to protect the company’s assets. Incorrect credit steps (especially if automated) can also lead to loss of turnover for the business.
At The Back Office, we have the skill to effectively, efficiently and quickly turnaround your company’s cash flow and to aide your company’s financial sustainability.
One of the biggest reasons for the demise of companies is the Directors’ or Boards failure to proactively recognize the warning signs and to respond immediately and proactively. It is most difficult for companies to access financial resources in these circumstances.
Swift recognition of warning signs with regards to cash flow problems could prevent your company from suffering a severe fate. It is equally as important to be aware of the stability of critical suppliers to your business (the challenges facing their business that could impact on your sustainability).
We have the skill to recognize that credit risk planning and processes differs across the various industries and entities and there is no singular process that can be applied for either individuals, SME’S or large sectors.
It is therefore of the utmost importance to do an analysis of the enterprise and follow the steps as highlighted previously in order to deliver the best solution for your company.
The Back Office does not believe that automation of systems with regards to credit decisions is possible as automation fails to understand the various dynamics of the different entities and industries with whom your company contracts which could result in bad debt or opportunity lost.
Simply put, shareholders invest in an enterprise to receive a return on their investment, but unfortunately many businesses are not equipped with the knowledge required to manage cash flowing both in and out of the business and failure to plan does not have a positive outcome. There is a reason why approximately 15 companies are loosing their listing on the JSE per week (2017).
Due to the hands-on-approach of business, The Back Office has a selective client approach and does not accept multiple projects simultaneously. It is a unique service offering.
Thus the need for a personalized on-hands approach to a solution for your business – THE BACK OFFICE
Liquidation, Insolvency and BR Statistics 2018
