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Going down with your ship

Many of you may have noticed the sinking of the Carnival cruise ship in the news this weekend. This incredible story, which many believe shouldn’t happen in this day and age, has been said to have cost the company $95 Million.

The cruise company Carnival own 11 brands such as P&O, Cunard and Princess Cruises.

Shares in Carnival fell by 18% and the belief in the market is that the capsizing of the boat will affect the cruise industry quite heavily.

Insurance had been taken for the huge boat which had an excess of $30 Million.

It’s an unfortunate event, but unless your company specialises in Cruises, there should be financial plans to back up if anything goes wrong.

From  machinery breaking down, to a power cut, to flooding. Most banks now will expect companies to have a crisis management or disaster recovery plan for all eventualities. Such accidents and “acts of god” can cause companies to shut down and cease trading.

Disaster recovery can offer solutions such as office based companies can be transferred to another building if something happens at the original site.

If there is no plan in place, companies may need to have access to finances to ensure that business continues and these finances need to be available straight away.

If the worst happened, you could always find alternative ways of funding business that didn’t include your bank such as Factoring or Invoice Discounting.

This form of funding uses capital tied up in invoices. If your clients are credit worthy, Factoring Lenders will take on your invoices and pay out up to 85% of the capital. This could be in your business account within 24 hours.

The lender then chases payment from the clients and you receive the rest of the money, minus a small fee.

Going down with the ship is one option, but making the most of alternative funding will keep your company afloat.

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