So it was February 2019 and I had this nervous feeling in my stomach. After assisting other practitioners on various Business Rescue matters for almost 3 years, I received my first solo appointment as a Business Rescue Practitioner (BRP)!
The first thought that came to mind was the old saying – “Be careful what you wish for”. How true has this been in the first half of 2019…
It has by far been the most exciting challenge that I have undergone. Also, this year, having operated my first solo business rescue matter, I experienced a few challenges first hand which I did not perceive in the same manner when I merely assisted other BRP’s on a matter.
Business Rescue is still very new in our country and therefore I still believe that it will take years before we fully understand the legal and financial implications in this industry.
When faced with a specific issue, whether it is legal or financial, you still get differing opinions on the very same issue. Different attorneys, accountants and BRP’s have completely different views on what a specific challenge requires to be solved, which means there is no set way of a successful rescue yet. The only guidelines we as BRP’s have are Chapter 6 and a few court rulings that have been made.
I still believe that there is a major lack in the PCF (Post Commencement Finance) space and our secured creditors have way too much power in a rescue. This is because South Africa has the 4 big banks which all have more or less the same lending criteria which makes it is near impossible to get PCF while a company is in rescue.
So, we have a tough time implementing 1st world country solutions with a 3rd world financial infrastructure and business operations.
The economy out there is a lot tougher than it was a few years back and of one truly wants to ” make it” in this economy, you have to be extremely creative.
I still truly believe that this is one of the best environments any person that is or wants to be an entrepreneur should get involved in. There is much to learn in this tough environment and the experience you get is invaluable.
You actually learn more from other people’s mistakes as a BRP than in any other situation. There really is no replacement for experience.
In the finance space, I never knew that there was such a thing as Purchase Order Financing. I mean who would want to buy my purchase orders from clients?! Well, many apparently.
In this tough economic climate, entrepreneurs have come up with extremely innovative finance solutions and there are currently so many finance options available. Yes, these options come at a higher interest rate than traditional banking finance options. but they are o so valuable if there are no other options available to you.
I am really glad I can be part of this business rescue industry with all of its challenges and I cannot wait to see it grow into a true life-saving option for distresses businesses. I enjoy every moment of being a Business Rescue Practitioner.