What action can you take to secure your future – right now?

UN Secretary General Antonio Guterres warned at this week’s UN climate change conference (COP25) in Madrid that the planet is “close to the point of no return” and branded global efforts to combat climate change as “utterly inadequate”. 

“The point of no return is no longer over the horizon, it is in sight and hurling towards us.”

He’s not alone – Mark Carney, governor of the Bank of England and Villeroy de Galhau, head of the central bank of France signed an open letter on behalf of the climate-focused Greening the Financial System (NGFS) – a coalition of 34 central banks urging climate change action saying that it will lead to “disruptive events such as mass migration, political instability and conflict.”

Their aim is to make companies “integrate the monitoring of climate-related financial risks into day-to-day supervisory work, financial stability monitoring and board risk management.”

They see the aim of incorporating climate change planning into everyday business activity as an ambitious but necessary and sustainable step.

The bottom line according to NGFS is that companies and industries that do not adjust or properly plan for the physical, transitional and the liability of financial risks associated with climate change will “fail to exist”.

 

Doing your bit to stay afloat

Every company will be doing its bit to help fight climate change. It’s also good business sense to find efficiencies and save money where you can. 

But where is the point of no return for your business?  

What are the warning indicators that let you know that you’re too close to the event horizon? 

  • Balance Sheet insolvency

One of the most simple ways is a direct comparison between total company assets and total company liabilities. If the liabilities exceed assets then insolvency could be imminent and you should contact some BusinessRescueExperts for advice asap. 

  • Cash Flow Test 

How well equipped are you to pay your debts on time? Could you cope if an expense arrived ahead of schedule and had to paid up front quickly? If you can’t or are regularly missing payment deadlines or bills then this is also an insolvency red flag.
There are also several other indicators that in isolation may be one-off annoyances but taken together could spell big trouble:

  • Incomplete financial records
  • Constantly reaching and exceeding borrowing and credit limits
  • Creditors frequently chasing you for payment 
  • Clients paying late or not at all
  • Taking on excessive credit and loans that you know you may struggle to pay back
  • Avoiding or not being entirely accurate with suppliers, customers or creditors when asking for information or further details

If any of these situations sound familiar then get in touch with us soon. 

A free initial consultation with one of our trained expert insolvency advisors will help you begin to identify and explore ways to put your business on a surer footing.

Temperatures and sea levels may be rising but your debt, costs and stress levels don’t have to join them.