It’s not uncommon for a company to suffer creditor pressure. Colluding conditions of late customer payments, declining markets, lack of finance and more, sometimes form to make the perfect cash flow storm.
The key to surviving said creditor pressure is spotting your creditor types, knowing the resolutions available for each and acting fast.
Greenfields Creditor Spotting & Survival Guide
Creditor Types:
HM Revenue & Customs (“HMRC”)
Trade Creditors & Suppliers
Banks & other Financial Providers
Landlords
Creditor Type Traits & Resolutions:
HM REVENUE & CUSTOMS
Purpose: Government department for collecting tax including Corporation Tax, VAT & PAYE to fund public services.
Pressures: Payment Demand Letters, Additional Late Payment Costs, Statutory Demands, County Court Judgments, Winding Up Petitions.
Resolutions: HMRC Time To Pay | CVA | Administration | Alternative Finance: Invoice Factoring, Asset Finance, Peer to Peer Lending
TRADE CREDITORS & SUPPLIERS
Purpose: Supplies a company with good & services (not yet paid for), to allow supply of your company customers.
Pressures: Payment Demands, Debt Collection Agencies, Statutory Demands, County Court Judgements, Winding Up Petitions.
Resolutions: Time To Pay Negotiations | CVA | Alternative Finance: Invoice Factoring, Asset Finance, Peer to Peer Lending.
BANKS & OTHER FINANCIAL PROVIDERS
Purpose: Provide finance for company needs: assets, day to day running, expansion, research & development and more.
Pressures: Additional Late Payment Costs, Appointment of an agent (an administrator or a receiver) to recover debt.
Resolutions: Informal Negotiations, CVA | Administration | Liquidation
LANDLORDS
Purpose: Rental of commercial property for Company occupation
Pressures: Payment Demands, Debt Collection Agencies, Statutory Demands, County Court Judgements, Winding Up Petitions. Plus Forfeiture (termination of lease if rent unpaid for a number of specified days).
Resolutions: Time To Pay Negotiations | CVA | Alternative Finance: Invoice Factoring, Asset Finance, Peer to Peer Lending.
It is hoped you found this guide useful. In the course of our company recovery work we have managed all creditor types; so if you have one or more creditors putting pressure on you please contact us 0121 201 1720 for advice about the best approach (it’s free).
Download the Creditor Spotting & Survival Guide
Written By: Becky Shingler - Digital Marketing Manager | Email: rs@GreenfieldRecovery.co.uk
