Give the lender a measurable plan showing what will change, who will do it and how the business will fund the transition.
Corporate Recovery Partners
01 / 06
A sales forecast is being offered where an action plan is needed
A regional wholesaler asks its lender for time to recover. The bank requests a turnaround plan. The owner drafts a confident sales forecast but says little about slow stock, overdue customers or the cash needed to implement changes. The lender needs a plan it can test, and management needs one it can actually execute.
Identify the main reasons for the decline: pricing, margin, collections, stock, overhead or lost customers. Support the explanation with reconciled figures and operational records.
Separate a temporary event from a continuing weakness. Saying sales will improve does not explain why the business repeatedly runs out of money at the same point in its operating cycle.
For each proposed change, name the owner, date, cost and measurable result. Examples might include disposing of obsolete stock through an advised process, correcting unprofitable pricing or changing collection responsibility.
Distinguish implemented actions from proposals needing consent, finance or customer agreement. Do not book savings in the forecast before the work required to achieve them is credible.
Prepare a cash forecast covering the transition, existing commitments and proposed lender payments. Government guidance supports tracking the timing of receipts and expenditure. Include the cost of making changes, not only the eventual benefit.
Test lower sales or slower collections. Identify what support is committed, what is requested and what management would do if the lender declines or delays its decision.
Propose a concise reporting schedule with actual-versus-plan measures and early escalation of missed assumptions. Ask what information the lender needs and confirm any agreed facility changes in writing.
If the plan cannot support due debts, obtain qualified insolvency advice promptly. A turnaround document should support informed decisions; it is not proof of viability or protection from director obligations by itself.
