Financial Stress Advice
Whether you are a company director or an individual dealing with unmanageable debt, timing is a crucial factor that could prevent the situation from becoming worse. Seeking professional advice early can alleviate pressures from creditors and can provide a resolution to unpaid debts.
Financial stress relating to companies
If you suspect that your company is in financial distress or may become insolvent at some stage in the future, it is important to seek professional advice immediately. The earlier you seek professional advice, the higher the probability of business survival. More importantly, if you are aware your company is insolvent (it can no longer pay its debt), and you continue to incur further debt, you may face serious consequences including civil penalties, criminal charges and compensation proceedings for insolvent trading. For more information on how you can be protected from insolvent trading, refer to Safe Harbour.
What are the warning signs of insolvency for businesses?
- Continuing losses
- Overdue taxes
- Not being able to obtain further finance from your existing or alternative banks
- Suppliers placing your business on COD or demanding payment before further supply is made or demanding payment plans
- Not paying your creditors within agreed trading terms
- Issuing post-dated cheques
- Cheques being dishonoured
- Making rounded payments not against specific invoices
- Threats of legal action or legal action for debt recovery
- Not being able to produce timely and accurate accounts
If you are noticing any of the warning signs, it is important to speak to a qualified professional. Contact our team on the SV Partners confidential assist line, 1800 246 801. Also visit our Indicators of Insolvency Checklist.
Financial Stress relating to Individuals
If you are an individual and can no longer pay your debts, it is time to seek professional financial advice immediately. The sooner you seek professional advice to fix the situation, often the better resolution to alleviate the pressure from creditors.
What are the warning signs of insolvency for individuals?
- Often denial, believing the situation will go away
- Increased tension with your spouse or partner, arguing over money issues
- Receiving letters of demand, late payment notices, writs and/or bankruptcy notices from creditors, debt collectors or solicitors
- Unable to pay creditors such as banks; credit cards and invoices (bills) on time or at all
- Borrowing money from family and friends due to lack of savings (or spending all your savings)
- Applying for more finance or credit or often being denied for more credit
If you notice these signs, seek help immediately before the situation becomes worse. It is better to face your situation together with a professional, regaining control of the situation. Call our confidential assist line on 1800 246 801 to talk to one of our professionals that can assess your options.