This column is dedicated to the financial issues facing forging businesses. It provides guidance on financial matters to those who may not have a dedicated CFO on staff and additional financial insight to those who do.
To illustrate this situation, we will discuss the actual story of a small automotive repair and towing business. The business had a regional towing contract with AAA Auto Club, which gave the business top priority on all service calls.
A common concern with business loans is covenant compliance. Does my business loan have covenants? If so, what are the compliance requirements? Smaller loans under $100,000 may not require collateral and are usually free of any covenants. As businesses grow, however, so do their financing needs.
It looks like COVID-19 issues will continue to affect business for the foreseeable future. In our previous column, we introduced a cash-flow management tool. We hope you were able to download the tool and instructions.
Welcome to the inaugural installment of this new column in FORGE. It will be dedicated to the financial issues facing manufacturing businesses, providing guidance on financial matters to those who may not have a dedicated CFO on staff and providing additional financial insight to those who do.