Sole traders who find themselves seeking debt management advice may be wise to consider getting an Individual Voluntary Arrangement (IVA). If they have run up debts of more than £15000, they could benefit from the scheme which allows people to manage their repayments over the course of five years. There is a higher chance of this happening after it was revealed that businesses waste £1.9bn chasing up late payments each year. For many small businesses, weak cash flow poses a bigger insolvency threat than underlying lack of profitability. Bibby Financial Services report that 35 per cent of businesses are finding customers are taking longer to pay invoices than a year ago, causing many to seek debt solutions. The Bankers Automated Clearing Services (BACS) recently announced that small and medium-sized businesses are owed a total of £30.4bn.
Late payments plunge many into debt
April 6, 2010 By
