How Can I Save My Business From Bankruptcy?

Is your business on the brink of bankruptcy? Once the debts start piling up, it can often feel as if there’s no way out. However, if you’re determined to keep your business alive, there usually are still ways to turn things around. Here are five ways to save your business from insolvency.

Call in money that you’re owed

While you may owe money to suppliers and lenders, it is possible that clients will also still owe you money. Calling in all the money that you are owed could help you to pay off your own debts. Start chasing up anyone that owes you money by checking over the money going into your accounts (missed payments can sometimes go unnoticed – especially if you are running a solo business). Consider offering early payment discounts in order to get clients to pay up early.

Focus on your most profitable customers

You can earn more money by focusing on the customers that are most profitable. This could include stocking up on a product that you know sells well and offering a slight discount on it in order to get many customers buying. If you offer a continuous service, start focusing on the customers who take up the least amount of time and energy and who pay their invoices on time. Reduce your marketing towards customers that are not profitable and stop wasting time dealing with customers that are not paying up. This Business News Daily post offers more advice on how to drop clients.

Talk to a debt advisor

It could be worth getting advice on how to proceed with your debts. An advisor may be able to recommend unique ways of tackling your debts. Debt settlement companies can even negotiate with creditors in order to help lower your debts so that you have less to pay. You may even be able to wipe your debts using a debt discharge service like DTSS. No, DTSS is not a scam – there are companies around that can legally free you from your debts. Depending on whether they are personal debts or business debts, the advice available may vary (personal bankruptcy can have a negative impact whether you are a sole trader or whether you are director of a limited company).

Look into debt consolidation

When it comes to getting rid of multiple debts, sometimes the best solution is to take out one large loan with which to pay them all off. Instead of having multiple creditors chasing you up, you’ll then only have one creditor to worry about. There are consolidation loans designed for this very purpose.

Start making cutbacks

In order to start paying off your debts, you may need to make cutbacks. The biggest and most effective cutbacks are often the hardest – they may include moving premises or dismissing employees. That said, you might not have to resort to these measures, and there may be other things that you can cut back on such as cancelling software subscriptions you do not regularly use, scaling back on marketing and going paperless.