Since the GFC businesses have been hit hard. Non-for-profit organisation Business Debtline knows this, having helped 26,000 small businesses who were struggling to keep up with their payments last year.
The organisation said that a significant proportion of these were pub licensed businesses – a group particularly struggling with staying out of debt. Business Debtline shared their top tips for alleviating financial strain:
- Start by separating your debts into those of extreme importance and those that can wait a little longer. Debts that could restrict you from trading should you be unable to pay are a priority.
- Stay away from depositing money into accounts linked with lenders to insure your money is safe.
- Create a realistic budget.
- Don’t cheat. If you are tied to a certain supplier, don’t be tempted to purchase from a cheaper one if it is in breach of your agreement.
- Set up payment plans for your utility bills.
- Provide your local council with a copy of your business and household budget sheet and set up a plan to pay what you can afford towards rates. This will help prevent any problems associated with not being able to make business rates.
- Speak to council about any rates you may be entitled to. For example, a pub in a remote area may be eligible for a rural relief rate.
- Refrain from allowing debt collectors into your home or business as they are restricted from entering without permission.
- Use an accountant to keep on top of bills and records.
- Seek advice from professionals about other ways to best manage your business’ finances.
http://www.morningadvertiser.co.uk/Business-Support/Ten-tips-on-dealing-with-debt
