In economic downturns, businesses face treacherous terrain, evoking fear and uncertainty among owners as they confront shrinking consumer demand, dwindling profits, and the threat of closure. Yet, amidst despair lie rays of hope and strategies for resilience.
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Are you a business owner facing the challenge of getting difficult debtors to pay up, especially when cash flow is tight after the holiday season?
Here are five essential steps to help you navigate unpaid invoices and improve your financial situation:
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Winding-up proceedings, often referred to as liquidation, are legal procedures initiated to dissolve a company or business entity. It occurs when a business cannot meet its financial obligations and creditors seek to recover the money owed to them. The Role of a Debt Restructuring Specialist in Winding Up Proceedings: As a debt restructuring specialist, I assist businesses facing winding-up proceedings by providing guidance, expertise, and support. Here’s how I can make a significant difference: Assessment of Financial Situation: My journey with clients begins with a comprehensive evaluation of their financial situation. To understand the financial landscape, I examine the company’s
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This question has been posed to me many a time from SME’s and key decision makers. This should be guided by your Accountant, but realistically it really depends on your business circumstances. Many examples spring to mind regarding an ‘ideal time’ for a Bad Debt Write Off, here are just three of my experiences while working in this field: The Pub Owner Debtor: Pub Owner based in East Anglia, who ran a string of 3/4 pubs Debt Balance outstanding £60,000 Around mid 2008, a file of £60k landed on my desk, where £90k had been lent to this one PG.
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In last week’s blog I talked about the actions Creditors could take in relation to the Companies Act 2006. This week, I’ll be covering why the CDDA (Company Directors Disqualification Act 1986) was brought into contention, and the restrictions that can be imposed on fraudulent directors. This 2014 article from the Financial Times shows the type of nonfeasance is unlikely to be tolerated. Why the CDDA Thankfully, the vast majority of Directors have a fiduciary duty to act in the best interests of the company that they are representing. The good value that the Shareholders, it’s Staff and the overall
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Over the next couple of weeks I’ll be looking at Creditors rights. What they can do to keep on top of their credit checks and what restrictions are placed on Directors who continue acting without making changes. This week I’ll be exploring what Rights Creditors actually have. For businesses large or small in respect of trying to get their debtors to comply with their needs. … and should these needs be part of a Final Demand Process? Although not widely explored due to the cost of investigating and taking action, Creditors have the facility to issue a warning to the
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Managing a steady cashflow is never easy. With so many business attributes in abundance – it’s essential to have some sort of leverage to ensure your business gets paid. … and to deter would be non-payers. Here are 5 key reasons why the Late Payment of Commercial Debts and Interest Act 1998 (UK only) – ( The Act ) are crucial in getting your business debts paid. … and when and how you should use it. 1) Working Capital Many business owners think that generating Sales is enough to promote the overturn in your Balance Sheet credentials. However, by introducing
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Having been committed to various roles in ‘Recoveries’ for the last decade or so … The sceptic in me always does a rigorous check to see if all angles have been covered before legal action is even considered. Now, you might be thinking – “Yes, I’ve covered everything All my letters/calls have been ignored.” Are you absolutely, 100% sure? As a Recoveries Consultant, dealing with the plethora of cases, I can tell you that around 9 out of 10 cases eventually cause or lead to problems. Out of those 9, usually 3 of those reverberate around a complaint of some sort
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Sitting in between my Clients; ‘Mrs’ on the left and ‘Mr’ on the right. Whilst talking, every so often ‘Mr’ would look over his shoulder, past the Mercedes on his driveway and out into the street. The same pattern would continue throughout through the meeting. Eventually I couldn’t help but agitatedly ask – “Why do you keep on doing that?” It turns out, it was all off the back of the advice I had given him days earlier. Here was a husband and wife team, with a substantive amount of business debts that had built up. If they were a
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Wow Air, Primera Air, Flybe, XL….. What do the above have in common? Well, they’re budget airline carriers who operate in a no-frills capacity. It’s estimated that around 30% of airlines who start to operate go bust within the first two to three years of trading. But why? Simply because of high operating costs, broken down primarily with large fuel costs and high end operating leases, wage bills leaving many of these airlines scraping the barrel of their overdraft. This article from the Independent showcases that if we, as consumers, aren’t careful, we too could get stuck in the middle
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