Reduce and manage debt

With many businesses finding it increasingly difficult to balance their books there is a range of options available to help you tackle the problem:

• Calculate your total debt
• Decide how much you can afford to repay each month
• Negotiate with creditors
• Tackle priority debts first, e.g. rent, utilities

Professional help
There are a number of Government agencies, solicitors, accountants and debt counsellors available in the region - all offering valuable professional advice. There are also several advisory bodies that can advise you about tackling business debt:

• Citizens Advice Bureau - The Citizens Advice Bureau offers advice through its local offices, online and via a national network of advisors. www.citizensadvice.org.uk
• AdviceUK network - Formed in 1979, AdviceUK is the UK’s largest support network of free, independent advice centres. www.adviceuk.org.uk
• National Debtline - The National Debtline provides free independent advice on dealing with debt problems. The service it provides is free, confidential and independent. Tel 0808 808 4000.

Recovering debt
Research by BERR (The UK Dept for Business, Enterprise & Regulatory Reform) found that 80% of business to business transactions are on a trade credit basis. This exposes you to the risk of late payment or even bad debt. It also has an impact on your cash flow and financing costs. Read more about recovering debt.

Debt factoring
Debt factoring is a good way to free up the money your business may have tied up in its sales ledger. It involves selling your invoices to a third party Factoring or Invoice Finance company. In return they will process the invoices and collect the payments and allow you to draw loans against the money you are owed. Read more about debt factoring.

Other useful information
Alternatives to bankruptcy
Assess the health of your business  

To find out more about the FREE business support services available from Business Link Yorkshire visit www.businesslinkyorkshire.co.uk  or call 0845 60 48 048.