What are the signs the business is in trouble or company debt signs?

COMPANY DEBT ANALYSER

What are the signs the business is in trouble or that the company is in debt?

Sometimes, due to high levels of stress or denial, some business directors find themselves looking for business financial solutions when it may be too late. If you can answer yes to more than one of the questions below it may be a sign that your business is in financial trouble and you will need to start looking into things in more detail.

  • Are VAT and PAYE/NIC payments constantly late?
  • Is the overdraft at its limit? This could indicate cash flow problems, especially if the account is at its limit for a prolonged period of time. Check the company finances regularly to spot any warning signs.
  • Is the business dependant on contracts? Is the next big deal meant to solve cash flow problems? A business should not depend on one sale or contract to carry on business functions. Start making plans for alternative actions.
  • Is the business unable to secure new credit from banks unwilling to take on the risks?
  • Is cash flow consistently tight?
  • Is there trouble with stock because suppliers are not being paid?
  • Is the business receiving red warning letters and threats of legal action?
  • Does the company concentrate on only one or two major clients, depending on receiving
    business from them?
  • Are calls from creditors being avoided?
  • Are you feeling stressed, unable to sleep and falling out with family and employees?
  • Are the directors of the business taking a wage from the business?
  • Are the directors of the business using personal money to pay suppliers and wages?
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