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Eight conversations to have with your client portfolio

Smart triaging will help you target Capital Advisory to the right clients. 

Ollie Maitland Mar 24, 2021

Working smart with segmentation

Business advisory can be seen as a wide ranging definition so knowing where and on which clients to focus is a challenge. Fortunately, Capital Advisory is focused squarely on optimising small business balance sheets with eight conversations which you could be having with your portfolio. 

We also do the legwork for you to know where the need and opportunity is in your client portfolio. With 40+ checks run across a client portfolio these roll up into eight clear conversations you can be having with your clients.

Our data scientists have been working on all the calculations in the background so this is a ready-made solution to offer targeted Capital Advisory without having to think about who needs it.

Scenarios where you can apply Capital Advisory to your client portfolio:


1. Business profile meets Recovery Loan Scheme eligibility

Government loan schemes have been a lifeline for many businesses and have presented an opportunity for many others looking to improve their capital position. With over £1.5M lent to small businesses, the RLS is vital in bridging the gap between previous government loans and smoothing out future cash flow for investment or growth. 

 In this scenario, clients may wish to take the opportunity to access preferential capital before it expires. Seeing the estimated maximum facility size clients are eligible for the Recovery Loan Scheme allows you to do this.


2. Risk of cash shortfall or uncovered liabilities

An indicator of immediate risk to a business is their liquidity ratio - a simple check of current asset (less inventory) coverage over current liabilities. Specific cases - be that corporation tax, PAYE or VAT payments - are frequent crunches for cash flow.


In this scenario, reaching out to clients to offer advisory around cash flows or improve their cash collection is a great way to solve this alongside any external capital which might need to be raised.



3. Late payments or bad debts accumulating

Instead of writing off bad debts, businesses should consider recovering it. Pre-Covid £40bn of bad debt was written off each year, and this directly impacts the balance sheet and bottom line. 


In this scenario, clients can use a no-win-no-fee legal service to recover bad debts in their business to improve their cash position.



4. Credit and supplier limits downgraded

Following a dynamic year in the SME market, accounts being filed at Companies House are now frequently resulting in downgrades. Identifying companies with downgrades presents an opportunity to improve their position by providing valuable additional information to credit bureaus.


In this scenario, a credit improvement service could be applied to the business to negotiate up supplier limits and improve a credit score to access funding.


5. Potential capital to be reclaimed by innovation spend

Grants are our favourite form of capital. Typically with few strings attached every business should be considering what they are eligible for. Innovation grants - from R&D tax reclaims to Innovate UK grants present an opportunity to bring cash in for a high return on investment.


In this scenario, identifying clients who fit the profile of high capital spend or growth leads to a potential call with an Innovation Consultant to identify what options they have in their business.


6. Client running sub-optimal debtor book position

A healthy debtor book is great for sales, but a hindrance when needing access to cash. Identifying which debtor books can be optimised and by what degree will help clients trade more efficiently.


In this scenario, when combined with a strong credit control proposition, your practice can look at facilities and products to get a return on investment on cash locked up in the debtor book.


7. High fixed asset registers available for optimisation

Many service businesses have little security in their businesses so those with unencumbered assets will find using those as security will present opportunities to access capital which can be invested into trading activities.


In this scenario, clients will be able to look at refinancing assets or whole portfolios of assets to reduce their cost of funds and optimise their balance sheet.


8. Cash rich clients suitable for wealth management advice

Is inflation around the corner? Protecting the cash balances not just from bank insolvencies with FSCS but also the attritional impact of inflation on cash rich balance sheets are important. 


In this scenario, looking at cash management to access higher rate cash deposits will be critical to ensure protection against inflation.

See how this applies to your portfolio

Our capital advisory platform does the hard work of knowing where your clients are at so you don’t have to. See your client portfolio, differently.

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