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I first published this on my Blog on 4 November 2021, but I thought this is worth revisiting due to the current problems facing businesses in today’s financial climate. If you’re offering services to clients, you have the choice of whether to request payment up front, allow them to pay on after delivery or set up a payment plan. Many business owners shy away from asking for up-front payment, fearing it will make them

No, a “zombie company” isn’t something from a sensationalist horror film. It’s actually something far scarier, if you think it might apply to the business you run — and it’s far more likely to keep you awake at night. A zombie company is one that could be described as dead but still walking. That is, it’s a company that’s still managing to trade and service its debt, but nothing more. There’s no chance of being able

If you’re a landlord, serious rent arrears can prove inconvenient and annoying, reducing your ability to pay bills and to invest in growth. There are mechanisms to recover rent arrears, but these are different depending on whether the rental is for domestic or commercial purposes. If you need to recover commercial rent arrears, the mechanism is the Commercial Rent Arrears Recovery scheme — CRAR for short. What Is CRA

The private rental sector has been volatile for some time, with changing regulations, fast-rising rents and difficulties for landlords, and that doesn’t look like ending any time soon. What with a reduction in the buy-to-let market, further increases in the cost for tenants and uncertainty over what measures the new government might bring in, the whole sector is holding its breath. A Fall in the Buy-to-Let Mark

It’s only a few weeks until the election and, whoever ends up forming the next government, most of us have hopes about what their policies will be. Small business owners are no exception, and the Federation of Small Businesses (FSB) has released the results of a poll of its members. This suggests strongly what small business owners are looking for from the next government. Cracking Down on Late Payments Late pa

In difficult times like these, resorting to Buy Now Pay Later (BNPL) can seem like a lifesaver. Used carefully and with full understanding, it can be a good way of spreading costs for items you can’t immediately afford. The problem is that many consumers don’t fully understand the terms and, as recent research by TotallyMoney shows, repayments can very quickly build up. What Is Buy Now Pay Later? BNPL is

In my last post, I talked about the effect of liquidation on a company’s directors, mentioning that one potential problem arises if a director has a Director’s Loan Account with the company. So, what exactly is a Director’s Loan Account, and what are the dangers if the company is liquidated? What Is a Director’s Loan Account? A director is entitled to draw funds from the company as a loan, and

If a company enters into any form of insolvency, whether it’s a company voluntary arrangement, a pre-pack administration or a restructuring plan, it’s likely that one of the major creditors will be HMRC. It’s often believed that any taxes owed have to be paid first, before any other debts have to be considered. However, the situation is far from simple. Some recent cases have supported HMRC’s claims, while others hav

While the current economic problems in the UK can’t really be laid at the feet of consumers, there’s no doubt that widespread poor financial management isn’t helping matters. This ranges from naivety in investment to a general “have it now, pay tomorrow” culture that’s fuelling debt. A recent survey suggests that this isn’t set to improve. The study, by Compare the Market and MyBnk, found that only 41% of young adult

One of the major financial innovations of the past decade has been the rise of open banking. This term describes the use of open APIs (application programming interfaces) to allow users more control over their banking. While uptake has been limited among consumers, it’s proved popular with SMEs. Recent research has shown more than 750,000 SMEs using it in the UK. What Is Open Banking? Open banking is the general term