The Business Bulletin
Ask the experts Do you have a burning question that you would like the answer to? Or maybe you’re looking for some advice to help your business? In each edition some questions will be shared and answered by some of The Business Bulletin experts.
Q. I’m struggling with debt at the moment, how can I best handle it? A. The trick to solving a cash flow problem is to fully understand the options that are available (and those that are not!). This is the point at which, in all honesty, the harassed business manager is best advised to consult an expert who can provide a full picture of what the true options are. The other thing to be considered is time. If you have a cash flow problem, time is most likely something you will not have a lot of, especially if you are being chased by creditors. Also, if a business manager has to spend their time trying to solve this difficult financial problem, it is taking them away from the other aspects of running the business. Not a good idea! Peter Douglas Business Finance Services
owe could be broken down into a
now and put plans in place so that you
payment plan that is affordable to
are not left in this predicament.
you and acceptable to them so that they recover their money rather than potentially lose it.
A. There are a number of things to consider if you are having problems paying your bills. Firstly, it is best to communicate with people you owe money to and let them know you are having problems. There is nothing worse for someone who is owed money to be “ghosted” and not know what is going on.
Look at who owes you money. Start chasing your debtors (as I am sure there will be some overdue) and if they are struggling, then arrange payment plans with them. Going forward, consider a cashflow forecast of money coming in and going out over the next 3, 6 or 12 months. This will enable you to see
There are usually options open to you. The following sites will also provide useful guidance: ■ gov.uk/options-for-paying-offyour-debts ■ citizensadvice.org.uk/debtand-money ■ moneysavingexpert.com/loans/ debt-help-plan If it is too overwhelming for you
Work with a creditor to look at
where there are any gaps of deficits in
then seek advice from you accountant,
payment options – maybe what you
the future that you can better manage
bookkeeper, debt specialists or
Issue 9 – Finance | 47
