If your company is struggling with its cashflow, one of the consequences is that you are likely to be getting pressure from your creditors (i.e. the people and businesses who you owe money to). This can be stressful for the owners of the company, especially when added to the other stresses of running a business.
Of course, it is understandable why your creditors are chasing you for the money they are owed – as they need to manage their own cashflow.
Creditor pressure is all the more stressful if you haven’t got enough money to pay what you owe. The important thing to remember is that there is professional help available to you.
A good firm of Insolvency Practitioners will offer you free advice to discuss your situation and help you to work out your best options. (You can get your free advice from Clarke Bell by contacting us on 0161 907 4044 or [email protected])
There are several options that could be available to you – including a Company Voluntary Arrangement (CVA) or a Creditors’ Voluntary Liquidation (CVL). We will help you determine what you should be doing now.
What can a creditor do to collect their payment?
When a creditor is unable to collect a debt from your company they can do a number of things, including:
- passing the debt on to a debt collection agency who will attempt to recoup the debt for them
- selling the debt to a third-party
- if your debt is secured by an asset or property, creditors may be able to seek to seize your possessions
- petitioning against your company which could mean your accounts become frozen and you have to cease trading.
What can a creditor not do to collect their payment?
While creditors can do a number of things to try to collect what they are owed, there are certain lines they cannot cross, such as:
- persistently pestering with phone calls – especially at inappropriate times
- breaking data protection by speaking to family members or colleagues
- insisting on larger payments than necessary
- using more than one debt collector to recover the same debt.
The best way to deal with your creditors
Communication is key when it comes to dealing with your creditors. Burying your head in the sand and hoping everything will sort itself out is not going to solve anything. In fact, it is only likely to make matters worse.
If you can’t resolve things with your creditors independently, you should talk to a Licenced Insolvency Practitioner like Clarke Bell. We have of experience and expertise in handling these types of situation.
We can help you come to an agreement that satisfies you and your creditors with a Company Voluntary Arrangement (CVA). Or, if a Creditors Voluntary Liquidation (CVL) is your best option, we can ensure that you meet all your legal obligations to your creditors and shut down your company.
Contact Clarke Bell for your free, initial advice 0161 907 4044 or [email protected]