How to manage debt that cannot be paid on time
Managing the expectations of those owed money is the first stage. Then you must provide HMRC, lenders or creditors with a well reasoned and supported approach to repayment. Finally, it is essential you do not default on that plan or you will lose credibility which may lead to enforcement action against your business.
These negotiations can become complex and take time. However, with the help of our effective and experienced team, you might be surprised to discover your business has the right mix of supportive lenders and suppliers to allow this approach to be agreed and implemented.
When matters become more challenging F.A. Simms are expert at achieving and implementing a plan.
Call our experienced team today 01455 555444. Alternatively…….
Understanding why debts can’t be paid
When funds aren’t available is always clear. Why they’re not available can be more complex. Sometimes why is more obvious – for example the reason could be a significant bad debt, the loss of a key customer or losing a key member of staff. However, in some cases it can be a much more subtle combination of factors.
A thorough review to understand the causes leading to the cash flow shortage is a key part of what F.A. Simms will offer you.
How to stop future debts not being paid
Once the causes of the cash flow problems have been identified and steps taken to address those causes, then there’s a baseline in place to plan forwards from.
A plan based on a stable and transparent base will, once communicated to them by us, give more confidence to suppliers, lenders and HMRC. This proactive approach will often bring greater engagement with the third parties that are needed to take the business forwards,
F.A. Simms will work with you to prepare and review your plan and then work to achieve the agreement of third parties. We will add weight and clarity to the plan in the eyes of HMRC, creditors and lenders.