Kate is a six year old girl who asked about her dad crying because his company had debts. No matter how you might try and hide your company debt from your family, the pressure the debt puts you under shows more than you can imagine. If a six year old child can spot her dad crying because of debts in his business, just imagine what your employees can spot.
So how do you deal with company debt when you know you can’t turn to your bank as you have no security to put up for the loan. Well you have a number of options which I have listed below for you to take a look at:
· Increase credit limits from suppliers
· Add on extra suppliers
· Delay payments to suppliers
· Sell off surplus inventory / stock at discounted prices
· Bring in private investors / partners
· Sell off any fixed assets you are no longer using
· Lease back any assets you have fully paid for
· Try and extend existing creditors terms from 30 days to 60 days
· Try increasing your profit margins
· Increase the number of times your customers buy from you
Did you know you can only increase your sales in THREE ways only?
1) Increase the number of customers
2) Increase the price
3) Increase the frequency of your customers purchase
If none of the above don’t work for you because the company debt is too large and you don’t have time on your side, then you need to sit down with a very good Insolvency Auditor who will help you create a strategy to eliminate or reduce your total company debt.
There are a number of options that are open to company directors with a help of a good insolvency auditor. I am not going to go into details because each company debt is different to another company debt. But in brief your options might be, a CVA, a Liquidation, a Pre-Pack administration, an Administration or a Liquidation of your old company and registering a new company and starting up without the debts.
With all of the above options you do need professional advice to make sure you do not get prosecuted for wrongful trading or better known as insolvent trading.
You can call our office for FREE and confidential advice on the telephone 0800 24 0800 or search Google for an Insolvency Auditor and sit down with him or her to help you map out a strategy that will help you reduce or eliminate your company debt.
Filed under: BUSINESS DEBTS
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