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Small Business Debt | business debt advice | help debts |
Small Business Debt Advice. Are you a small business or sole trader facing debt problems? Our free, national debt counselling service may be able to help by calling 0800 074 6918.A small business is insolvent if it doesn't have enough assets to cover its debts, or it is unable to pay its debts as and when they are due. If you are a small business or sole trader experiencing debt problems please do not hesitate to contact us.If you monitor your small business' actual performance against the budget and the cashflow forecast regularly, this will give you an early warning of potential problems. You can then take action to avoid small business debt. Starting or running a small business can expose you to debt, often for reasons outside of your control. For instance, if you are a small business or sole trader, your company can face debt problems if your customers do not pay you on time thereby affecting your cashflow and ability to pay your suppliers.E-insolvency provides information on how to reduce the risk of small business debt by suggesting actions to take and sources of advice to approach. E-insolvency describes possible outcomes of small business debt for different types of business. Importance of advice when avoiding insolvency
It's a good idea to take financial and legal advice as soon as your business starts getting into debt. This will give you time to assess the alternatives open to the business.You should seek professional advice immediately if: - you cannot cover your small busines debt
- the small business receives a County Court summons
- you can't pay staff wages
- there is an acute lack of working capital in your small business
- Your accountant, who may already be familiar with your business, may be able to advise you.
If you are a small business or sole trader facing commercial debt or insolvency and would like to discuss your options with an impartial expert then please contact our debt advice team on 0800 074 6918Directors should seek legal advice if their small business company becomes in debt. Directors are required to make an early decision on whether the company should cease to trade. If you are the director of a small busienss in debt or facing financial difficulty, you will need to be sure that the small business or company has reasonable prospects of avoiding liquidation, before taking the decision to continue trading. If you are a small business or sole trader facing debt you need to address the problem carefully. Directors need to be aware of their position regarding the small business' situation as they may be found: - personally liable as a result of any personal guarantees
- criminally and personally liable for fraudulent trading, ie deceiving creditors, if the company goes into liquidation
- personally liable for wrongful trading, ie trading while the company is insolvent, if the company goes into liquidation
Directors may be disqualified if they are found liable and could face criminal proceedings. Get help and advice about your debt problems now by calling 0800 074 6918 |
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