Protect Your Business From Debt
Managing debt and cash flow is a balancing act most businesses face. The Solvers will suggest how to collect money owed to a small business, offer refinance and explore options.
For example; what is debt factoring? How can I insure against default by major clients? Check out the profiles below to find out how we can help.
If your needs are more specific, we’re here to help. If you’re not sure, if there’s more than one issue you’d like to discuss or if you need help right away contact us now – it’s likely we’ve come across the problem before. And if we haven’t, we can certainly refer you to someone who has. Remember too, your initial consultation is free and without obligation. Arrange yours now.
Business Cash Flow Finance
Thesolvers.com.au has a number of members to talk to about managing your debt load, or negotiating a new business finance arrangement.
It might be a short term loan to cover a cash flow squeeze, a medium term arrangement to help you restructure the business, or negotiating new arrangements to move ahead or acquire a new business or asset.
Debt Management & Negotiation
Business loans and finances can sometimes quite suddenly become unsuitable for your business. A downturn in part of the economy may make it hard to get credit or to access extra debt. Your business needs may change or a major client go broke, leaving you short.
Business debt negotiation can be a tough challenge. Even more so when you are under financial pressure.
Good businesses and family homes can be saved if you get the right advice early enough. Sometimes if your business is in a really tight spot, you may need to consider working with a Director’s advocate, a restructuring person or Safe Harbour expert.
These people can either work with you to renegotiate debt, offer some protection from insolvent trading, or, if needed help with a formal restructure or insolvency.
When personal debts get out of hand. you should seek professional financial advice, especially if you are seeking a personal debt agreement. If you are not careful or you get bad advice, you can find that you are paying much more that the original debt, over a long time and lots of fees. Also, you may find your debt being sold by the financial institution to another company who will chase you for payment.
If things get very tough, you may need to ask creditors to compromise on how much they will be repaid and over what time period. If the business has a solid foundation and some good people (and a market to sell to), short term cash flow finance issues – or a big hangover debt from a past problem – might be addressed via restructure through Voluntary Administration (VA) or a Deed of Company Agreement (DOCA).
Done correctly (and legally!) these formal restructures can breathe new life into a business when the parties can be brought together to compromise.
If your needs are more specific, we’re here to help. If you’re not sure, if there’s more than one issue you’d like to discuss, or if you need help right away, contact us now – it’s likely we’ve dealt with the problem before.
Managing debtors can be a headache. Debt collection for small business can be especially hard. Some big companies can take ages to pay, and a few can take a bit of persistence. Another challenge is dealing with people who you know, who you may even consider friends.
Sometimes someone who is ‘not you’ chasing the money will see what sort of friendship you really have, or at least do a better job of getting the money in!
Debt collection is also important if there is a restructuring event or a major client is at risk. It is worth getting in touch with a solver who can help protect your business interests (and reputation) but also get you paid.
Business Credit Insurance & Factoring
Many businesses have 1 or 2 big clients who are responsible for a great deal of the turnover. And sometimes you are approached by a new client or you win business with someone you’ve not dealt with before.
The business is great, but how do you stretch your cash to manage if they take a while to pay, or worse, don’t?
What is Business Credit Insurance? Did you know that insuring against default by a major client is an option? You still have to do the job of collecting your debt from another business, but you do have the peace of mind that if there is a problem, you have some protection to keep your own business going and your people paid.
What is Factoring? This type of cash flow finance means you can sell or borrow against the invoices you raise while you wait for the money to come in. You get paid now and give a slice to the credit provider who gets paid the whole amount as it comes in. A great way to control cash flow.
As always, if you want to know more about smart business options like credit insurance, or factoring, it’s always best to deal with someone who knows what they are doing!
Business Asset Security
Just as it makes sense to fence your factory or lock up your shop, it is smart to protect all your assets.
What do you do if you lease things out, sell on consignment, offer vendor finance or loan money out against an asset?
The Personal Property Securities Register or PPSR has been around for a while and many people still do not know much about it. And if they do, a poorly setup registration can fail to protect them.
Quite a few businesses still have old credit terms and floating charges in their contracts. PPSR replaces a lot of the old rules and is an online record of your ‘security’ on goods and assets – it is often used when they have been sold on credit or leased.
Talk to a solver about the PPSR and ensuring your business credit terms are up to date.