Chartered Surveyor Firm Facing Severe Working Capital Shortage

The Challenge

A chartered surveying firm in England was experiencing a period of rapid growth, having doubled its size in just three years. While this growth led to a full order book, it also created a severe working capital shortage, forcing the company to take on increased borrowings. The situation escalated to the point where the business was facing significant HMRC tax arrears and had multiple loans from alternative finance lenders. The directors’ primary goal was to avoid a formal insolvency process.

The Solution

The firm engaged RMT KSA to address the crisis. RMT KSA’s team took a multi-pronged approach, first by leading negotiations with the three different lenders and HMRC. At the same time, they worked closely with the directors to prepare a comprehensive business plan and detailed financial forecasts to present to the creditors, demonstrating the company’s future viability and potential for success.

The Results

The strategic negotiations and detailed financial planning led to a positive outcome for the company. The lenders agreed to extend loan terms by 12 to 24 months, providing much-needed breathing room. Furthermore, HMRC Debt Management approved a 30-month “Time to Pay” arrangement for the total of £475,000 in corporation tax, VAT, PAYE, and NIC liabilities, successfully preventing the need for a formal insolvency process and allowing the business to continue its growth trajectory.