Other people’s financial problems can very quickly become your financial problems.
When a company goes into formal insolvency any ordinary ‘trade’ or ‘unsecured’ creditors come last in the strict pecking order ~ after banks, the government, employees and landlords. So any returns are normally very low.
If it is a supplier that has gone bust, this can leave your business without stock or services which are vital to your success. The butterfly effect caused by a suppliers business insolvency in many situations can cause a wave that impacts other business with varying results.
For some business owners, this is just yet another aggravating obstacle to overcome – along with increasing costs, tighter profit margins and difficulties raising new funds.
However, for others it can mean that their business is now facing its own cashflow difficulties.
If one of your clients or suppliers has gone bust and you are considering its impact on your business, call us on (Freephone) 0800 195 6768.
We can give you the advice you need.