Is your business serious trouble?

It’s good to talk

The number of companies going out of business in this economic downturn is being attributed to a toxic combination of markedly slowing demand, elevated input costs and very tight credit conditions.

Business owners need to be aware of the most common signals that may indicate their business could be in serious trouble, and apply the same criteria to customers and suppliers.

Although it can be difficult to know exactly when your business is insolvent, there are several warning signs that business owners need to consider. These include:
When the numbers don’t add up, if you are constantly pushing against your overdraft limit or you have no funds in the bank to pay suppliers and staff.

If you are gradually falling further behind with payments to your creditors, routinely pay on final demand or only once legal proceedings have started

If you have started to do all you can to avoid taking creditor phone calls because you know it might be from somebody you owe money

Your suppliers and customers are likely to be in the same tough situation as you, so it is critical to keep an eye on your cashflow and manage your debtors.

The reality is that we face prolonged tough times, so it’s worth investing some time and effort in getting your business in shape now.