Dealing with creditor pressure is not an uncommon problem for many company directors. It can however, be worrying and distracting. It’s easy to find yourself spending too much time ‘fire-fighting’. However, if you’re experiencing pressure from your creditors, it’s vital that you make dealing with it a priority to protect both your business and your creditor relationships. Here we discuss the action that creditors can legally take against your business, your rights against creditors, and your options for dealing with creditor pressure.
To put it simply, creditors will not go away and should the need arise, there are various tools they can use against you to recover the monies owing to them. You need to be aware of what they can do, and particularly what the consequences of each action could be for your business.
The most common tools that creditors use in the first instance might be:
Creditors have the right to demand payment from you for the money they are owed, but there are limits to what this means:
When creditors want to show a more serious statement of intent, the legal options open to them are:
Follow the links for more information on each.
Dealing with creditors and collection agencies can be a burden and sometimes difficult, but to avoid more serious implications for your business, you need to keep on top of it. It’s simple, but honest and regular communication with your creditors is key.
If you are worried about deeper financial issues, or tell tale signs as to whether your business is in trouble, there are a range of solutions that we can discuss with you to help ease pressure or to restructure your business.
Have a look at these helpful topics:
Or for more tailored advice, contact one of our business rescue experts directly.