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Government Recovery Loan Scheme Now Available

With lockdown being cautiously eased, many businesses are looking forward to reopening, especially those in the retail and hospitality sectors. However, many of these have been closed, or at least operating on a restricted basis, for the past thirteen months and will find reopening difficult. However, a new wave of government support for businesses started on 6th April, under the Recovery Loan Scheme (RLS). One Schem
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Is There Light at the End of the Tunnel over Late Payments?

Late payment has for a long time been the scourge of small businesses, and this has only got worse during the pandemic. Many businesses are suffering severe cashflow problems as a result, including the risk of closure. However, there are signs the government is finally contemplating action to help struggling businesses facing this issue. The Scourge of Late Payments Most small businesses operate on very narrow margin
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Is This the Time for a Full Review of Debt Options?

The options open for people who fall into debt have needed reform for some time, but the Covid-19 pandemic has made the issue urgent. The Money Advice Trust has now published a new briefing, urging the government to commission a full review of the options for debt management. The Debt Crisis The need for review of debt options was already being urged before this year. In 2018, the Money Advice Service (now part of th
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£70bn Unsustainable Debt for UK Businesses

The past six months have been hard on everyone, and many SMEs have found themselves struggling financially. The government has created a variety of opportunities allowing businesses to borrow money or defer payment, but this has come at a price — high levels of unsustainable debt. Financial Predictions for Business A recent report by TheCityUK has predicted that UK businesses, the vast majority of which are SMEs, are
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Is Your Debt Statute-Barred under the Limitation Act?

If you’ve owed a debt for a long time (or if you’re a creditor) it’s important to understand there’s a time limit, beyond which a creditor can no longer take certain actions. However, there’s a lot of uncertainty about when a debt is or isn’t “statute-barred” — and what exactly that means. What Is “Statute-Barred”? A debt is statute-barred when no action has been taken to recover it for a specified time (usually six
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Council Tax Debt — Is It the Same as Other Types of Debt?

Debts come in many shapes and sizes. Most of the debts I recover are owed to private businesses or landlords, but money can also be owed to public bodies, including council tax due to local authorities. But are these debts a special case? The Dilemma of Council Tax Debts Councillors in Wolverhampton recently launched a drive to recover thousands of pounds owed in unpaid council taxes, and are looking at possible stra
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Negotiated Settlements — Is This the Way out of Debt?

One of the worst things about being in debt is that it can seem there’s no way out. You might certainly think negotiating with your creditors is a non-starter. After all, they hold all the cards, don’t they? It’s not as bleak as you might think, though. In some cases, a negotiated settlement could be your way out of debt. How Does a Negotiated Settlement Work? What you have going for you in negotiations is that your
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Need Debt Advice? Make Sure It Comes from the Right Source

Personal debt is currently at a record high, which means that more people will be consulting debt advisors or insolvency practitioners. In general, it’s the best possible thing to do in this situation — as long as you’ve chosen a reliable advisor. The Current Debt Crisis As I reported in a recent blog, personal debt is at its worst level since the height of the economic crisis following the 2008 crash. With income ha
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Personal Debt — the New Normal?

The country has been so busy lately arguing over the future of the UK economy that some disturbing signs at ground level have been largely ignored. Personal insolvencies are at their highest level since the worst of the economic crisis, while figures suggest that a staggering proportion of households are operating on a financial knife-edge. So what’s gone wrong? The Income Crisis According to figures from R3, the ins
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How Do You Handle Late Payments?

If you’re an SME owner who’s plagued with late-paying customers, you’re not alone. According to recent research by the Institute of Directors, almost half of all SMEs are in the same predicament. The Scale of the Problem Out of 787 business owners surveyed by the IoD, 48% reported having had problems with late payments since April 2017. Many cited “excessively bureaucratic” payment syste
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