06) Warning signs, bad debts, remedies and recovery Flashcards
1
Q
Name 5 common symptoms of cash flow difficulties within a business?
A
01) unauthorised excesses of the overdraft limit
02) frequent requests to increase limits
03) status enquiries to other finance providers
04) cheques made out in round amounts
05) cross firing of cheques
2
Q
In what order should a bank respond to warning signs?
A
- informal chat
- formal facility review
- facility restructure
- intensive care passed to special unit
- lending review
- ccjs
- insolvency action
- liquidation
