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Don’t bury your head in the sand about business debt

Don’t bury your head in the sand about business debt

Authored by Phil Meekin

Phil Meekin

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Approximate read time: 2 minutes

If you run a company and are finding your business debt increasing, you must address the situation. Do not simply bury your head in the sand.

Dodging the problem

This approach may seem attractive because it means you do not initially have to face up to the accumulating problems. However, in the long term, it will lead to increased anxiety and stress.

Financial difficulties will not disappear unless action is taken to resolve them. The more time that elapses before you take the situation in hand, the more your dilemma will worsen.

By ignoring the situation, you are likely to suffer from considerable anxiety and make mistakes. You may take inappropriate action due to being under pressure, which will only make the situation worse.

Take control

By contrast, if you decide to address the business debt, you will be able to regain greater control over the future of both you and your business’ situation.

Here at Wilson Field, we can help you deal with your company debt problems in the best way possible. As leaders in the market of Business Recovery and Insolvency, we will be able to determine the most appropriate course of action for you.

This action could involve agreements to help pay back what you owe while remaining in operation, like a Company Voluntary Arrangement (CVA), or Individual Voluntary Arrangement (IVA) if you’re a sole trader. Alternatively, you could allow a licensed individual to take over the business via administration. Or if the debt is too burdensome for the business to continue, closing and starting afresh through liquidation may be your best option. Whatever course of action you choose, by speaking to us, you can be sure it will be the most appropriate strategy.

In summary

Failing to face up to your money troubles really isn’t the way to deal with an insolvent business. If you want to effectively deal with the business’ debt and limit the damage, you need to take decisive action. Whether that involves repaying what you can afford via a formal payment arrangement or calling in the administrators or liquidators, acting fast means you’re more likely to achieve your desired outcome.

If you need free, impartial advice with no obligation, contact us today.

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