Dealing with Business Debt

insolvency in ireland - Dealing with business debtIf there is one thing that all businesses would give anything to avoid, it would have to be bad debts. Debt never signifies good news for a company, and the liquidation and the bankruptcy of a company is almost always due to too much debt that can’t be repaid. Not getting into a state of business insolvency is quite easy in concept; the only thing you would do is to avoid having debts. The problem with this simple concept is that it is easier said than done, as thousands of companies can attest to.

Dealing with business debt isn’t easy, because it also means dealing strictly with your loyal customers. Late payments from customers and clients make up almost 25% of all business insolvencies. To sort this out, you may opt to stop depending on the payments from invoices of customers and clients that don’t always pay on time. Though they are loyal and some of them could be your major clients, late payments put your own business finances under stress, and this can put your company at a greater risk of insolvency.

(more…)