This content was provided on behalf of One Insurance
EVEN as the global economy continues to improve and create new opportunities for citizens, the spectre of debt continues to loom large over hard working families. This is primarily due to the fall-out from the recession, which has left numerous households and SME’s combating spiralling debt liabilities.
This has severe long term consequences, especially once repayments can no longer be made and existing debts begins to escalate.
As rising debt levels in the UK indicate, many business-owners seek to surmount this challenge by borrowing more, although this can subsequently place a venture and its assets at risk.
3 ways to manage of your financial liability for the good of your business
While it is easy to outsource the management of your debt or the negotiation of settlements, following this course does you a disservice as an individual.
In fact, there is no reason why you cannot take responsibility for these processes yourself and plot the course of your own financial recovery. Consider the following steps towards solvency: –
Gain a clear and accurate insight into your debt
The first step as a debtor must always be to develop an acute understanding of your debt and its magnitude.
All businesses require investment, and it is important to understand whether or not you have spent wisely in the quest for commercial growth.
By being proactive and calculating the exact amount that you owe as a business-owner it is possible to understand your short-comings while plotting a suitable course that will diminish your debt without compromising your ability to trade and generate income.
Seek out new opportunities to save
Every business is different, but each provides cash-conscious owners with opportunities to save.
If we take businesses with a commercial fleet, for example, it is clear that this represents an ongoing cost that must be managed if the company is to operate frugally.
This therefore provides entrepreneurs with the opportunity to save, so long as they are able to identify the best fleet management solution for them and partner with reputable car and van insurers such as One Insurance.
Consider creative debt solutions
If your debt is already at a point where it is too much to manage comfortably, it is important to consider creative and flexible solutions to this problem.
Modern entrepreneurs are fortunate that they can rely on a host of such options, with examples such as IVA’s (Individual Voluntary Arrangements) providing a preferable alternative to bankruptcy.
Under this type of structured agreement, it is possible to schedule repayments to creditors while also retaining control of the company and the right to continue trading.