The past few years have presented more challenges than ever for businesses in the UK, resulting in endless unpaid invoices and outstanding debts. One of the biggest risks of these ongoing issues is that you can end up struggling with business recovery and insolvency. Today we’re going to share some of our top tips for protecting your business from insolvency in the near future. Our team will be on hand at any time if you need assistance with an invoice unpaid and to guide you through this process to avoid it happening again in the future.
Work With a Team of Professionals
When you have concerns about an unpaid invoice or outstanding debts, it can be tempting to try and deal with these issues alone. We always recommend seeking the advice of a team of professionals, such as our friendly team who will be able to advise you about debt insolvency. The sooner you can work with professionals who can guide you through how to chase invoices, the more likely you’ll be able to stay on top of your debts and stop an invoice unpaid from wrecking your company fortunes. Our team can take control of this issue to ensure you chase invoices in a timely manner, so that you can focus on what you and your business do best.
Clear Communication
From day one of sending an invoice, you need to ensure you are making your terms of payment very clear. This is one of the best ways to stop outstanding debts from building up and also ensure business insolvency isn’t an issue. Debt insolvency can’t always be avoided entirely, but with good communication and clear expectations about when you expect payment, you’ll be able to better defend yourself should an issue occur in the future. Our team can offer you examples of clear templates to use for your invoices, so that you can minimise the chasing of invoices you might be used to doing at the current time.
Reduce Costs
When you start to notice an issue with your cashflow, it’s time to ease off on your spending as soon as possible. As you start to reduce costs, you’ll free up some of your cashflow to help offer you more of a cushion. This is one of the best tactics to protect your business from insolvency, and the sooner you start paying better attention to your spending, the quicker you’ll recover from any issues you are experiencing.
There are many ways in which businesses can reduce their spending and costs, but it’s all about finding the area in which you are spending too much. This will vary from business to business, but you likely have one area you can cut back for now. We hope this will be a temporary measure for your company, but in some cases, you may find that you never need to go back to spending so much in the future on supplies or employees. Trial and error is a good way to cut back spending, so you can protect yourself and reduce the stress you feel about potential insolvency issues.
Find New Ways to Improve Your Cashflow
Many businesses have options open to them to help improve their cashflow in a rush. This could be offering a sale on your current product or adding a new service to your offerings. Of course, this is something that will vary from business to business, based on what you are offering to the public at the current time. You may find that you can upsell packages based on what you have currently on offer, which won’t cost you anything extra as a business, but can help to boost your sales significantly.
Pre-sales are a good way to bring in some cashflow for your business without committing to spending too much right now. If you are about to launch a new product or service, consider registering interest and payment in advance to boost sales. Of course, make sure you will be stable enough to offer this product or service when you say you will, or you may find yourself in bigger trouble further down the line.
Insolvency is something that no business wants to consider, but sadly it’s been a reality for many companies during the recent pandemic. By following the tips we’ve shared above, you’ll be more likely to remain in a stable place over the upcoming months, protecting your business from potential issues further down the line. Our team is here to support you with unpaid invoices and other issues which could result in insolvency when they are left unresolved for too long. Get in touch with us today to learn how we can assist you with these issues and to ensure that you keep your business in a good financial situation for the remainder of the year.