Debt Warning Signs - Company Debt Advice

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Debt Warning Signs

If you are experiencing some financial difficulties or think you are but are not sure, here are some common symptoms of financial issues. This is a general list and so some of the signs may not be relevant to your business. Read through the list and if you are unsure, or have a question, or realise you have some debt issues give us a ring or fill in the contact form and one of our representatives will be in touch with you shortly.

Major Warning Signs

  • Are your stock levels rising but your sales deteriorating or remaining static?
  • If you manufacture your own stock are you continuing to produce in anticipation of sales which are not forthcoming? Have you bought in raw materials and sales have fallen? Has the product mix of your sales changed and you no longer require this kind of stock.
  • Is your bank balance decreasing or your overdraft steadily increasing? This is a clear sign that you a\re paying more monies out than you are paying in. So what is the underlying reason for this mismatch between income and expenditure?
  • Are you slow or late in paying suppliers' invoices? Do suppliers constantly ring or badger you for payments. Are they threatening to stop supply or worse take you to court? Companies with no debt worries do not have to delay paying suppliers and do not have to face the inconvenience of non-delivery until a payment is made.
  • Have you come to agreements with suppliers and paying lump sums or weekly payments on account? Suppliers will want paying and may be requesting fixed value payments rather than discrete invoices. You may have had to agree some specific payment plan.
  • If you still use cheques - do you obtain supplies by issuing post-dated cheques? The supplier will want payment upfront or a cheque to give them confidence they will be paid.
  • Do you plan which suppliers you pay based on whether you need some new goods or services; or do you keep having to change suppliers to obtain credit for goods and services.
  • Do you have a range of excuses for non-payment; we cannot trace your invoice; there is a problem with the invoice; the list of excuses is long but all designed to extend the timeframe before payment.
  • Have you stopped paying the Government on time for PAYE and VAT.? Are you unable to meet their deadlines - you risk a fine and interest.
  • Do you have a post bag or email inbox which is full of 7 day letters, final demands, court summonses or winding up orders. Are you being chased through the County Court for payment?

There are a number of other signs but these are some of the most common. If you have this experience or want to be reassured then talk to one of our advisers who will help you through this process.

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This website has been written and intended for registered limited companies in the UK only. The site contains general information and resources for limited companies only in financial trouble. Insolvency Helpline only work with limited companies to offer solutions for their business debt problems. Insolvency Helpline cannot offer help or advice any other entity except limited companies. Insolvency Helpline does not advise individuals, sole traders or partnerships seeking debt advice. If you are an individual, sole trader or partnership seeking advice, we recommend using an alternative service.

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