Small Businesses and Sole Traders
Why Debt is a Growing Problem Amongst Small Businesses and Sole Traders
Starting or running a business can expose you to debt, often for reasons outside of your control. For instance, if you are a small business or sole trader, your company can face debt problems if your customers do not pay you on time thereby affecting your cashflow and ability to pay your suppliers.
The difficulty of starting and running a business is shown by the number of UK companies facing debt problems each year.
Indeed, the number of winding up petitions (termination of a company usually owing to commercial debt) increased by 45% between 2003 and 2004.
If you are a small business or sole trader facing debt you need to address the problem carefully. The reason for this is that under UK law if a company trades whilst insolvent, the directors may be liable for wrongful trading.
What Should you do if you are a Small Businesses or Sole Traders Facing Debt
If you are facing commercial debt or the possibility of it, you need to act swiftly.
This is because directors can avoid liability for wrongful trading if they are able to prove that they took sufficient steps to minimise the loss to the creditors after realising that the company was insolvent.
Debt Advice Service for Small Businesses and Sole Traders
If you are a small business or sole trader facing commercial debt or insolvency and would like to discuss your options with an impartial expert then please contact our debt advice team.
Click Here: For Free and Impartial Debt Advice
We have a specially trained team of commercial debt and insolvency experts who can give you free, independent and confidential debt advice.
Once we have helped you to identify which debt settlement solution would work best for you, we can also help you set it up- free of charge and without any obligation.
If you are a small business or sole trader experiencing debt problems please do not hesitate to contact us.
To contact an advisor call 0800 954 6241. Alternatively complete an online enquiry form and an advisor will call you back at the time that you specify.