An asset that has highly appreciated and owned in joint names can cause a challenge when it comes to IHT planning. Here we take a look at some careful IHT planning we assisted a client with in relation to a jointly owned asset.
Helping a Client Recover and Rebuild: Cashflow and Financing Solutions
Cloud
Our client, a service-based business with an annual turnover of £450,000, operates (like many others in their industry) with a negative cash cycle due to extended payment terms of 60–90 days with their customers.
We’ve worked together since 2022, when they set a personal goal of buying a home within five years a goal they achieved in just two, thanks to our strategic support and tax planning.
The Challenge: Loosing Revenue
During a regular check-in call, the client shared some worrying news , they had just lost one of their largest customers, through no fault of their own, but still causing a major blow to their revenue.
With long customer payment cycles and limited cash reserves, they were unsure whether the business could survive the hit.
Our Solution: Forecasting the impact
We immediately recommended preparing a detailed 6–12 month cashflow forecast to fully understand the impact.
The forecast revealed a serious cash deficit on the horizon, putting the business at risk of being unable to meet its obligations.
To address the issue quickly, we referred the client to our in-house Corporate Finance team to explore invoice factoring, a solution that would allow the business to access 90% of the invoice value upfront, with the remaining 10% paid once the customer settled.
The Outcome
The factoring facility was arranged swiftly, giving the business essential breathing space and relieving pressure on cashflow.
As a result, the client avoided a potential financial crisis, protected key relationships with suppliers, and maintained day-to-day operations. all while positioning themselves to rebuild and grow.
Key Takeaway
By staying close to our client and offering timely, strategic advice, we helped them navigate a critical challenge, maintain stability, and continue to grow.
Challenges are inevitable in business.
But with the right support, they don’t have to be a step backwards.
Our ongoing partnership meant we could act quickly, protect the business, and keep long-term goals on track.
Getting in touch with us
Strategic planning and finance go hand in hand in successful property development.
If you’d like to discuss your current project or want advice on financing options, give us a call today on 01634 731 390 or complete our take the next step form and a member of the team will be in touch.
Our services
If you would like to find out more about some of our services that might help you please take a look at our related pages:
Cloud Accounting & Business Software Solutions
