Cashflow Management includes Managing Business Debt, Debt Restructuring, and Debt Consolidation.
Managing Business Debt
Business Debt is money owed by a business to anyone who is due money.
Business Debt can be at a variety of levels, for example long term bank borrowing repayable over a 10 years period or equally last week’s milk delivery bill.
More recently business debt has come to be used most often as a term referring to unusual or unserviceable levels of money owing out of the business.
More often than not worrying business debt will be demonstrated by the fact that their overall value is increasing month on month.
So if creditors are sending threatening letters or HMRC are chasing hard, perhaps it’s time to assume business debt is becoming a problem. In other words cash flow is becoming a problem.
Depending on your trading style, incorporated or unincorporated your principal options are laid out on the following pages.
Let Insolvency.com guide you through your options.
Business Debt Restructuring
Business debt restructuring is more often than not seen as more a solution to one or a few business debts rather than a general all debts solution.
Negotiation may often buy sufficient time to refinance existing debt. Business debt restructuring can be an efficient solution to growing business debt.
Business Debt Consolidation
Business Debt Consolidation is sometimes referred to as Corporate Debt Consolidation.
Business Debt Consolidation is the process of merging or swapping existing or future business debt in order that repayment terms of the total outstanding debt can be structured in a more favourable way for the business.
This is usually with the goal of paying the business debt over a longer period of time with a lower monthly repayment.
Business Debt is the amount of money that your business owes.
The idea is that Business Debt Consolidation will then make it simpler dealing with the merged or replacement creditors (those you business owes money to).
Types of creditors can be simplistically split down into Secured Creditors and Unsecured Creditors.