Turnaround financing is for companies that have had a history of bad performance. It involves the challenge of improving a business by investing more money, or capital into the dying business. Often times the company is bankrupt or simply not performing. Turnaround financing includes the capital invested into the stagnant business -- businesses in distress.
Invested capital into a stagnant business could include financial capital or human capital - or both. Often times a group of in-house investors or other private parties with capital and management savvy will finance the dying business to improve their operations. Sometimes we will invest money by may be providing a complimentary product or service to a business they already have. By combining the two operations profits may increase - - a win-win deal.
We may categorize the turnaround in three different categories. These include:
• Cost Structure:
We will look at the expenses of a company and find areas that could be cut back that would increase profitability. This wouldn’t mean a large change like bringing in new management or creating a new business plan. Most dying or struggling businesses have elevated cost structures.
Replacing the current management that isn’t getting the job done is another option for the investor. They will have to look hard at the new candidates for management including their past business successes. They will have to determine if just a management change will be necessary to make a difference, or if a change needs to take place along with more working capital to make a positive difference.
• Declining Marketing Position:
If a company is declining market position we will not be as interested in investing into this business without making far-reaching changes, because the chances of success aren’t as great if left 'untouched'. Declining marketing position can’t be controlled by us like changing cost structure, management, and/or the business plan -- without strategic re-organisation.
Our Turnaround financing.....
• Can improve a dying business
• Minimum loan : ghs500
• Maximum loan: ghs50m
• Competitive variable or fixed interest rate in Ghana cedis, US dollars, GB pounds sterling or euro.
What you need to apply:
• Business registration certificate. Articles of Association and Memorandum of Association also required.
• Audited and RGD-filed Company Accounts
• Fully-functional business/corporate website mandatory
How to apply
Kindly complete an online application form here to get started.