How SCORE helped. 

We were contacted by a gentleman who had been in a construction related business for approximately ten years.   His presenting issue was that though his business was profitable he was having serious cash flow issues and thought he could not continue much longer.  


On our first meeting we discussed his problem and determined that one main source of his problem was that he was paying for many personal items through his business and was not aware of the amount of these drawings.   It turned out that in some recent years they amounted to more than the profit.   Another issue was that he had financed his shortfall through the use of credit card debt and was thus paying interest rates as high as 26%.   


We insisted that he come up with a personal budget that he could live with in order to determine if the business could support his needs.   Once that was done we suggested that he contact suppliers and try to negotiate longer terms.   Much to his surprise he had some success with this which gave him short term relief from his problem.   We also suggested that as the cash flow improved he apply as much as possible to the credit card debt with the highest interest rate and he has begun this process.  The future plan is to improve his credit rating and to find a finding source to eliminate the credit card debt and replace it with some kind of business loan which would have a much lower interest rate.


We have continued to meet with this gentleman and this process is ongoing