Struggling To Repay Your Trade Creditors?

Even when business is tight and cash flow restricted, it’s vital to keep your general and trade creditors on board. We understand in your line of business that it can be difficult to manage and stay up-to-date with multiple trade creditors. However, maintaining a strong relationship with your trade creditors is vital for the following reasons:

• The supply of their goods/services is often the lifeline of the business.
• When this comes under pressure, the removal of the goods/services can be terminal to your business.

To do this, however, you cannot take the approach of repaying the most aggressive creditor first. This will damage relationships with other creditors, and you will be heavily scrutinised at the first sign of any preferential payments made.

Personal Guarantee?

We have seen on several occasions that business owners will be unaware that they have signed a Personal Guarantee with their Trade Creditor. They will often use this as leverage over the client or use it as a threat. This changes the dynamic as you and your business will be under attack. If this is the case, you are personally liable to pay any money owed. Failure to pay could result in your bankruptcy and the loss of assets such as your home. Click here to find out more about the impact of Bankruptcy.

Trade Creditors: What Are Your Options?

With the many challenges that businesses are facing, such as high energy costs, supply chain issues, and staff shortages, we are seeing an increase in companies facing cash flow issues. We have had many clients come to us asking, “Can you get us more time?” At Bell & Company, we mediate with your trade creditors to relieve your business’ cash flow issues. This will grant you more time to improve cash flows and prosper through the unpredictable economy that exists in 2023.

Our Advice

You should always meet creditor issues head-on, no matter what stage you are at. There’s help and advice readily available with our specialist team. We know that it is vital to resolve all debt issues with debt negotiation involving these parties as quickly and amicably as possible in order to maintain good business relationships and ensure your continuity of production. Our team is adept in legal and financial fields and acts on your behalf, protecting you and your business’s immediate and long-term interests. So get in contact today by email at hello@bellcomp.co.uk or call us on 0333 305 4331.

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