Debt Talk: Small businesses & insolvency (March 2023)

During the cost of living crisis, the need for insolvency advice has been far greater than in the previous years as shown by Government’s data due to a rise in high inflation and change in consumer behaviour. In 2022 there has been a 56% increase in the number of companies going insolvent compared to 2021. In this episode of the Debt Talk podcast, Ripon Ray explored the financial challenges faced by small businesses and the inevitable advice needed from insolvency practitioners to save them.

Robert Tame ran a catering business. During the financial crisis, his business began to have a cash flow problem. But not every part of his business was struggling; so he had to prioritise his profit-making part of the business and make the inevitable decision to make his staff redundant. He was able to pull through due to meticulous financial planning and advice from an insolvency practitioner. He later sold his company with profit to a global company.

Anita Pickersgill spoke about how small businesses need to be clear with their terms and conditions. When a small business faces a financial challenge, directors of the business are also responsible if they do not take reasonable care and skill and seek advice if they are not sure about their business. It is crucial that small business owners act prudently.

Kate Ellis explained the types of insolvency options there are for businesses when it comes to insolvency: voluntary and compulsory. She emphasised the importance of getting advice early. Creditors can be sympathetic to your cash flow problems but it is essential that you let your creditors know sooner rather than later.

You can also find the top tips they offered to Debt Talk Listeners on running a small business, how to address cash flow problems and ways to deal with your creditors.

The next podcast will explore: ‘Funeral and debt’ during the cost of living crisis.

If you want to share your experience or expertise on the Debt Talk podcast, you can get in touch with Your Doctor Debt, Ripon Ray: ripon.ray@yourdoctordebt.com

Comments

Budgeting on Your Money Matters...with Ripon Ray

24% greater than on the eve of the financial crisis, Britons owe a total of £72.5bn on credit cards with £400m added to balances in November 2018 alone, according to the Bank of England. In such a mountainous backdrop, it's essential that regulators and the central government put financial education on top of the agenda for the well-being of communities who are struggling with money. On Your Money Matters show, I have tackled this exact issue by interviewing Michelle Turpin Cope, Money Trainer. She personally struggled to manage her money once she resigned from her job as a nurse due to stress and depression. She had devoted her life caring for NHS patients. Once her savings ran out, she had to turn to state benefits; otherwise, would have been destitute. The luxury of spending money on a cup of coffee every day, without realising the impact this purchase would have on her finances, was really an issue for her. Once she went on a money mentor training, she was forced to

A debt free path for a mental health sufferer

It’s a well-known fact that individuals who suffer from a hampered mental capacity - be it mental health or learning difficulties - are most likely to be vulnerable in our communities. They are also more likely to be victims of miss-sold products and services by companies, even though organisations that are providing financial products and services have a duty under the Financial Conduct Authority (FCA) to take extra care towards these individuals. This is what the FCA has to say about vulnerable customers: ‘ The vulnerability of the customer, in particular where the firm understands the customer has some form of mental capacity limitation or reasonably suspects this to be so because the customer displays indications of some form of mental capacity limitation (see ■ CONC 2.10) But due to a culture of intensive selling to consumers, generated by employers placing and enforcing - often difficult and unrealistic - performance goals which are attached to tempting

The Post War Welfare State is crumbling - who is to blame for it? Asks Ripon Ray

The current welfare state changed in such a way that a true reflection is required as to how this has come about and and its context. Post Second World War, the Attlee government nationalised the Bank of England, the coal industry, the Central Electricity Generating Board and area electricity boards, Cable & Wireless Ltd, the railways and the local authority gas supply undertakings in England and Scotland. It introduced free education for all by nationalising institutions which were either provided by parishes or philanthropists. The National Health Service was formed and made accessible to everyone regardless of ability to pay. If you were unemployed there was infrastructure to support you when you could not afford to pay by creating the welfare system as you see today. The expenses of running such a nationalised state was met by cheap loans borrowed from overseas, contributions made by tax payers and companies in times when Britain was losing imperial dominan

Your Doctor Debt: Ripon Ray

Search This Blog