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Insolvency

Business Insolvency — Why It Happens and How to Spot the Signs

Insolvency — it’s a prospect every business owner has nightmares about, even if everything seems fine at the moment. But what leads to a business becoming insolvent, and how can you, as owner, see the signs that you’re at risk? Why Does a Company Become Insolvent? Insolvency can be the result of a company no longer being able to pay its way. It may be unable to meet its debts or have more liabilities than assets, but
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Fighting Back Against Late Payment

Have you suffered from late payments by customers? If so, you’re not alone — research by the Federation of Small Businesses (FSB) suggests this is an alarmingly common problem faced by SMEs, especially when they do business with large organisations. Needless to say, this can be extremely annoying and inconvenient, but sometimes it’s a lot worse. If late payments are large and persistent enough, they can prevent your
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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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Are You Keeping Track of Your Cashflow?

It’s simple enough — if your business doesn’t have enough money coming in, it isn’t viable. And that’s cash in your bank account, not invoices you’re trusting will be paid promptly, or work you haven’t done yet. It’s staggering, though, how many business owners have no idea of their cashflow. Whether you manage your own finances or employ someone to do it for you, if it’s your business, you need to know all about you
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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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Are Your Debtors Hiding their Assets in Cyberspace?

If a customer owes you money for unpaid invoices, there are a number of ways of pursuing them to recover your money. Ultimately, you can take them to court or initiate an insolvency process against them. Either way, their assets will be assessed, and you can hope to receive at least a proportion of what you’re owed. But what if some of their assets are too well hidden to be found? It’s easier to do now than ever befo
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Two Major Takeover Deals by Debt Collecting Companies

Takeovers are a fact of business. They’re sometimes good for the customers of the companies involved, sometimes less so, but business never stands still. Debt collection is no exception, although it tends not to get the media attention given to media, engineering or major retail companies, and two significant takeovers have recently been announced in the sector. Two Recent Takeovers Cabot Credit Management, con
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Late Payments — Are Your Customers using You as a Bank?

Are you a supplier of services or goods, or perhaps a landlord? If so, the chances are you’re being used as an unofficial bank. Maybe you think that’s not you. Well, maybe it’s not, if everyone pays you on time as soon as the payments are due, but then you’re in a very small minority. Late Payments Statistics show that most SMEs are being paid as and when it suits their debtors, and that their aged debts have increas
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Insolvency or Court Proceedings for Debt Recovery?

Court proceedings to recover money you’re owed are not only slow but also expensive. The fee — from £455 to ££10,000, depending on the size of the debt — has to be paid upfront, which can be difficult if the debt has left you short. And this doesn’t mean the process goes any quicker. First you have to obtain a court judgement that you’re entitled to the money. Then, if the debtor still doesn’t pay up, you have to pur
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