Facing debt and cash flow problems is challenging for any business. However, where a debtor, supplier or client becomes insolvent, this could cause you great financial difficulty. In this post, we provide an overview of the signs that indicate a business may be approaching insolvency and set out the steps you can take to mitigate your losses.
Being able to spot the early signs of insolvency in those you are contracting with can protect your cash flow and even save your business. Some of the indicators you should look out for include:
You should also take note of persistent rumours within their industry about the financial state of the company. Rumours alone should not be the basis of believing a business is insolvent but where they are supported by the indicators above, it may be time to take action.
It is essential to be prepared for debtor insolvency. If you are having difficulty recovering debt from a failing business, we can help. Get in contact with our expert debt recovery team today.
We can work with your debtors to find a practical solution that works for all parties, so if you need advice on credit control, debt collection or enforcement, contact our team today. We will do all that we can to recover as much as possible. To discuss your options, 0141 331 2332 or complete our online enquiry form and we will get back to you.
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