Good business – unable to extract cash and paying lots of tax

It’s not always enough for a company to attract business and generate income. When trading company EZAB Ltd. first sought out Pareto, the business was successful, but it was also plagued with cash-flow problems and high tax payments. The owner was frustrated because he had always wanted to grow his company, but the lack of available cash made that impossible.

He turned to his customary advisers — his bank and his solicitors — but they failed to solve his problems. After talking to Pareto Lawrence for only 10 minutes, the owner realized that his previous advisers had let him down, that their advice was, at best, unhelpful. For example, his bank had advised that he cancel his life insurance policy and have the company fund it instead. Pareto pointed out that doing so would have had negative tax consequences — something the bank had not thought to tell him.

EZAB’s investment in Pareto’s services paid off quickly. Pareto’s advice enabled the client to save amounts he called “quite extraordinary”. In fact, EZAB recovered the fee it paid to Pareto threefold within the first two months they worked together.

Pareto found that EZAB had been overpaying taxes, and it brought the company’s tax payments under control.  Other strategies included starting a flexible pension arrangement and increasing the client’s wealth outside of his business.

One of Pareto’s goal was to ensure the client would be financially independent.  EZAB’s owner describes himself as “cautious by nature”.  Pareto advised that the client start off investing cautiously, but that he gradually pursue more growth-oriented investments. That strategy paid off well.

The client owns more assets now than he ever had before.  The value of his company is three times what it was when he first consulted Pareto, two-and-a-half years ago.  He is moving to a more substantial property. The cash that Pareto’s plans recovered let the client finance his own deals, freeing him from being dependent on the banks with their high interest rates and inadequate loan amounts. In turn, this enabled the client to pursue larger contracts. The company broke through the 3-million pound barrier. The client said his company’s growth is now “exponential”.

If this story resonates with you, if you also have a company that is successful but needs more cash to grow, call us for a free, no-obligation meeting on 01189 347 920 to explore ways we can help increase your cash flow.

“When I first met Pareto my personal and business finances were rather stretched, in desperation I had initiated talks with my bank and solicitor. However Pareto’s strategic plan unlocked immediate cash of £50,000 and further savings and cash since.”