HomeHome SearchSearch MenuMenu Our productsOur products

Four tips you can use to help your company manage debt

by , 10 April 2014
In the most recent Business Distress Monitor revealed that as many as one in four British businesses were struggling to pay debts. But, this isn't only a problem for British companies; South African businesses are also drowning in debt. If you're one of them, use these four tips to deal with debt so you can stay afloat.


Are you protected from personal liability in the new Companies Act?

If you're a director - you could be held personally liable for fraud in the company. This means that you need to know exactly what your financial status is.

Relying on your auditor for feedback is not good enough anymore.

Click here to find out how to protect yourself from personal liability.


Use these four tips to deal with your company's debt

#1: Recognise and act on early warning signs

Francois Olivier, the Executive Chairman at Prosperian say denial is not a solution to mounting debt.

You need to be honest with yourself and acknowledge if there's a problem sooner rather than later.

'A number of options are available to help deal with escalating debt, which are free, confidential and non-judgemental. And the earlier you take responsibility for bad debt, the more options and the more time you will have to pay it off.'

One of these options is debt consolidation. Read all about it here.

#2: Think about good debt vs bad debt

Olivier says you must use credit responsibly.

'With interest rates expected to continue rising, debt is becoming more expensive and should be reserved for necessities. You don't want to find yourself being burdened by loan repayments long after the utility of the loan has been forgotten.'

But that's just the tip of the iceberg…


Legally pay less tax

139 reasons SARS doesn't want you to see this


Here are two more ways to deal with debt

#3: Get in touch with creditors

Ideal Corporate Solutions advises you NOT to underestimate the power of communication.

'Get in touch with your creditors immediately to explain your business's situation and difficulties. Aim to reach an agreement with your creditors that offers relief for both your business and them.'

#4: Slash your budget

The site says one of the most effective ways to sort company financial problems out is to reduce your spending.

'Taking various steps such as giving up an expensive office for a home office and an army of remote workers, could be one step to help you slash your budget and avoid the beckoning finger of insolvency.'

There you have it. We hope these tips will help you manage your company's debt before it gets out of control.

Related articles

Related articles

Watch And Learn

Related Products


Recommended for You 

  Quick Tax Solutions for Busy Taxpayers – 35 tax answers at a glance

Here are all the most interesting, thought-provoking and common tax questions
asked by our subscribers over the last tax year – everything from A to Z!

To download Quick Tax Solutions for Busy Taxpayers – 35 tax answers at a glance click here now >>>
  Employees always sick? How to stop it today

Make sure you develop a leave policy to regulate sick leave in your company.

BONUS! You'll find an example of the leave policy and procedure in this report.

To download Employees always sick? How to stop it today click here now >>>
  Absenteeism: Little known ways to reduce absenteeism

This FREE e-report will tell you how you can reduce absenteeism in your workplace while avoiding the CCMA and without infringing your employees' labour rights.

To download Absenteeism: Little known ways to reduce absenteeism click here now >>>
  7 Health & safety strategies to save you thousands

Don't let a health and safety incident cost you one more cent. Implement these seven
strategies in your company today.

To download 7 Health & safety strategies to save you thousands click here now >>>