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Commercial Debt Management : All What You Need to Know

Debts are a useful tool to help you start and grow your business. However, financial events outside your control can take you further into the red than you had possibly imagined. So, what should you do if debts start to become a problem?

A Risk is a part of running a business. You may not be able to easily plan for recessions, natural disasters or other negative events, because if you are too cautious, you may never succeed. However, sometimes the odds will go against you.

If you find your business further in debt than you would like, do not panic. There are many commercial debt solutions available. Do not just sit back passively and wait for the worst to happen. Consider contacting an experienced commercial debt management company to examine your financial situation and recommend the best commercial debt solution available. Here is a brief overview of commercial debt management.

Need help? CALL US NOW ON 0161 266 266

5 WAYS WE CAN HELP WITH Commercial Debt Management

  • We Will Contact The Enforcement Agent On Your Behalf.
  • We Will Aim To Stop Any Further Bailiff Enforcement Action.
  • We Will Contact The Local Council On Your Behalf.
  • We Will Provide You With You Available Debt Solutions And Look To Set Up An Affordable Repayment Plan.
  • Free Impartial Advice.

More than one in four callers (26%) to National Debtline now have council tax arrears, up from just 14% a decade ago. This is also one of the fastest growing forms of debt we are seeing – and rising council tax bills mean this trend is likely to continue.

 
SOURCE - WWW.THEGUARDIAN.COM

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0330 133 1228
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Commercial Debt Management Explained: All What You Need To Know

Debts are a useful tool to help you start and grow your business. However, financial events outside your control can take you further into the red than you had possibly imagined. So, what should you do if debts start to become a problem?

Risk is a part of running a business. You may not be able to easily plan for recessions, natural disasters or other negative events, because if you are too cautious, you may never succeed. However, sometimes the odds will go against you.

If you find your business further in debt than you would like, do not panic. There are many commercial debt solutions available. Do not just sit back passively and wait for the worst to happen. Consider contacting an experienced commercial debt management company to examine your financial situation and recommend the best commercial debt solution available. Here is a brief overview of commercial debt management.

Need help? CALL US NOW ON 0161 266 266

5 WAYS WE CAN HELP WITH A Commercial Debt Management

  • We Will Contact The Enforcement Agent On Your Behalf.
  • We Will Aim To Stop Any Further Bailiff Enforcement Action.
  • We Will Contact The Local Council On Your Behalf.
  • We Will Provide You With You Available Debt Solutions And Look To Set Up An Affordable Repayment Plan.
  • Free Impartial Advice.

More than one in four callers (26%) to National Debtline now have council tax arrears, up from just 14% a decade ago. This is also one of the fastest growing forms of debt we are seeing – and rising council tax bills mean this trend is likely to continue.

 
SOURCE - WWW.THEGUARDIAN.COM

Call Us Now On 0161 266 266

What is Commercial Debt Management?

Commercial debt management is specially designed for businesses that are struggling to stay afloat financially and cannot manage to make the minimum payments towards their debts. It is considered an informal arrangement, meaning it is not legally binding and there is no need for court appearances, or visits to or from solicitors.

The primary outline for debt management is to create a single, affordable fixed monthly payment for your creditors as part of the agreement. Your debt management company will handle your creditors on your behalf so as to eliminate further harassing calls and letter. Any charges and interests may be frozen during this time to allow you repay your debts faster.

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How Does Commercial Debt Management Work?

A commercial debt management company will examine your income, expenditure and creditor details with you. This will help them to determine the best debt solution for your case. They will also be able to calculate a suitable monthly repayment figure for you.  Once agreed, they will prepare the necessary paperwork and send it to you. You will be required to sign the necessary documents and send back them to the debt advisor.

After receiving the documents, the company will contact your creditors and set the new arrangement in place freezing all interest and charges. Next, you will start paying back your creditors on a pro- rata basis, that is, the creditor the business owes the most money will receive the biggest share going down on a sliding scale.

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What Are Some Possible Commercial Debt Solutions?

Depending on the financial situation of your business, your commercial debt advisor will consider various debt solutions. Some of these debt solutions include:

  • Protect Trust Deed

This is an ideal debt solution for Scottish businesses, including sole traders, partnership and limited companies. It is usually an agreement between the business and its creditors whereby the company agrees to pay a percentage of what it owes and the creditors will write off the rest of the unsecured debts.

  • Business Debt Arrangement Scheme

It allows your business to pay back its debts in full, but at a lower interest rate and over an extended timeframe. If you are trading as a partnership or a limited liability company,   you will need to enter a Business debt management Scheme.  A business debt management scheme lasts for a maximum of 5 years and allows you to continue trading as you pay back your debts.

  • Company Administration

A company Administration is an ideal commercial debt solution if your business has little assets and does not have sufficient cash flow. It is a formal procedure where a licensed Insolvency Practitioner is appointed to act as the administrator of your business so as to bring about a recovery. 

  • Company Voluntary Arrangement (CVA)

A Company Voluntary Arrangement is a legally binding agreement that enables your business to repay its outstanding unsecured debts over a specified period of time, usually 5 years. For a CVA proposal to be approved, at least 75 percent of your creditors must agree to its terms.

What are the Features of a Good Commercial Debt Management Companies?

When looking to fix the debt issues of your business, one of the first things you should consider is that you hire a good debt management company. Here are some of the top qualities of a commercial debt management firm.

  • Highly Experienced

A good commercial debt advisor should be highly experienced. A good debt management proposal must be perfect. This can only be achieved by an experienced business debt expert.

  • Highly Confidential

Debt is a private issue. Therefore, it is important you go for a debt management company that will keep your information 100 percent private.

  • Highly Rated and Reviewed

The best business debt management company should have high ratings with positive reviews. This indicates that the past customers were happy working the company.

 

Regardless of the scenario your business is facing, taking action as soon as you realize the financial problem is vital. You will be surprised at the options available to you. It may not be the end of line for your business. The earlier you contact a good commercial debt management company, the more they can do to improve your situation.

 

Call Us Now On 0161 266 152
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