Is Your Business Financially Secure?
You can reassure yourself that your business is financially secure here – spend a few seconds looking at this checklist. If you know the answers to all the questions below, you are more in control of your business than many business owners or managers – congratulations.
If you don’t know the answers, make it your business to find out today.
- Are you are slow or late to pay invoices?
- Do you clear debts by lump-sum payments on account?
- Do you make payment by post-dated cheques?
- Do you leave paying old invoices until you need delivery of a new order?
- Do you use disputes to delay payment ?
- Do you use numerous suppliers to increase the level of credit availability?
- Is your business largely reliant on one customer?
- Do you have to borrow heavily to keep the business running?
- Do you have a lot of outstanding debtors or potential bad debts?
- Are you unsure how much money you owe, and how much money you are owed?
- Do you often receive final demands from your creditors?
- Are you facing court action by suppliers?
If you’ve answered yes to any of the above can you – being absolutely honest with yourself, put forward a solid business reason for your answer.
If you can’t, or if you’ve answered yes to a number of questions – take advice now. Your existing lawyer or accountant may be a good place to start, but if the solution requires formal insolvency or rescue, you will need to talk to an independent licensed insolvency practitioner.
These are only warning signs, not confirmation of a real problem, But, they should never, ever be ignored.
The next step
By realising that problems are looming, you have already taken the first step; you should contact a specialst.
Act quickly if you are facing financial difficulties – a Company Voluntary Arrangement or an Individual Voluntary Arrangement may rescue your business and be a solution to mounting debts, depending on the circumstances. If you think that a customer is experiencing operating or financial difficulties that may leave you with a potential bad debt, you should seek professional advice, and find out more about the action you can take.
A licensed insolvency practitioner can advise you – a first consultation is always free. Save yourself a lot of worry and money.
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