Maryanne was the Managing Partner of a professional services firm that had two partners and 11 staff. Both turnover and profit had shown double digit growth each year from the time she took over, culminating in a €1.5 million turnover and an excess of €500k profit (before partner salaries) the previous year.
However, the firm’s bank overdraft was always up against the limit of €275k. Both her accountant and the bank thought the business could could easily manage and afford an overdraft of €400k, and were recommending that as the appropriate course of action. Without the overdraft, Salaries and Revenue Commitments could not be paid regularly, and partners’ drawings were stifled.
Maryanne wanted the business to be free of the overdraft within two years, thus providing them with financial independence.