Insolvency Practitioners’ Tips for Surviving Business Debts

Editors note: this article is a departure from our usual topics, but we’re including it here for any of our UK readers who may be small business owners.

Too much debt can be the end of a small business. While some debt can be necessary to grow your company, allowing you to hire new employees or purchase new equipment, too much debt can seriously damage your cash flow.

But if your business debt has crept up on you, you’re not alone. In the UK, insolvency is on the rise. According to The Insolvency Service,  insolvency rose in 2019 compared to 2018, demonstrating that a growing number of small businesses are falling into significant debt.

Here are some ways that you can start to dig yourself out of business debt and survive becoming insolvent.

Chase Up Late Payments

Late payments from your clients can be problematic for your cash flow. While some late payments might be unavoidable due to the kind of business you run, once you’ve submitted an invoice, you should try to ensure that your clients are being chased for payments regularly.

Catching up on your owed payments will help you raise the funds you need to get out of debt. Take a look at all of your outstanding invoices and start to contact the customers, giving them a polite nudge to pay up. For new clients, you might want to consider shortening your payment terms or adding a late-payment penalty to encourage swift payment of invoices.

Consolidate Debt

Debt consolidation is when you transfer your debts into a single business loan. Although this won’t make your debts disappear, merging them all into one loan can reduce your monthly payments and outgoings and help you better manage your money. Rather than having to make lots of separate payments, it becomes much more manageable as it all goes to a single loan provider. Once you have an easier time of repaying your debts, you can start paying it off and pull your business out of trouble.

Negotiate with Creditors

If you find yourself unable to make debt repayments, you could contact your creditors directly and see if you can renegotiate terms. Your creditors might be open to accepting smaller amounts of re-payment each month rather than risk the business defaulting on the loan.

To start the process of negotiation, send your creditors a hardship letter outlining your issues. You should explain why you cannot pay back the loan, what attempts you have made to remedy the situation and explain why your situation is unresolvable. They may be willing to let you pay your debts over a longer period of time, or even accept less money than you owe. From their perspective, they would rather get back some of their money than none of it, so they may be open to negotiation.

Cut Down on Expenses

If possible, you should look at cutting costs in your business to help your cash flow. This can be difficult, and you may have to be ruthless, but it could be essential to saving your business from going under.

Start by reviewing your budget and all your outgoings. Pick out what you can completely do without and cut it off right away. Take a look at where spending could be reduced, like switching to a cheaper supplier. Moving your business operations into a smaller, more affordable location could save thousands in rent, but it can be an expensive initial investment. Discuss your options with your accountant and only continue to pay for the essentials.

Increase Your Income

Boosting your cash flow can help with your long-term business goals outside of debt management. Promote your business to increase your earnings with low-cost promotions like a limited-time sale or offering discounts. If you have a lot of stock, those items represent money that is tied up in your business and unable to pay down debt. By selling it off in a sale, you can quickly free up cash to help ease those debts. For more long-term revenue-boosting, you could set up an affiliate marketing programme, ask for referrals, use ads and much more.

Enter a Company Voluntary Arrangement

If your business becomes insolvent, you could consider a Company Voluntary Arrangement (CVA). This is an agreement between your business and your creditors that allows you to pay off your debts over a set amount of time, but that blocks any legal action from being taken against you.

A CVA can help improve your cash flow, halt the pressure from your creditors and stop the threat of a winding-up petition. Only a licensed Insolvency Practitioner can create the arrangement and begin the proposal after gathering all the necessary information. A CVA is just one of the solutions to business insolvency. But an Insolvency Practitioner will be able to talk you through your options if your debt becomes unmanageable.

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Top 10 Most Valuable Digital Currencies

Below is list of to 10 digital currencies.

1.  Bitcoin

Bitcoin was created in 2009 by Satoshi Nakamoto, a mysterious person who does not reveal identity. Bitcoin is a monetary unit, using the currency abbreviation BTC, which uses open blockchain networks to store data. So no one can control or edit the data recorded on the blockchain. So Bitcoin Trading is great way to earn money.

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How to Financially Prepare for Purchasing a New Home

Buying a home is an essential step in many people’s lives. It’s a place where your family can settle, put down roots, and grow together. And it’s not just important for personal reasons. Financially, it’s likely to be the largest purchase you ever make, as well as the most important investment.

So, it’s understandable if you’re a little nervous about financially preparing to purchase a home. While a bit of nerves is warranted, don’t let that stop you from making the financially responsible steps that will make homebuying a little less stressful. Check out these steps, and start your homebuying journey out on the right foot.

Make a budget and stick to it

The first step toward being able to responsibly financially plan for purchasing a home is to start diligently budgeting. One option that is often recommended is the 50/20/30 budget. How does this work? First, take a look at your monthly income. The first half of that should be put toward necessities, like rent, utilities, and groceries.

After that, take 20% of your income and put it toward debt repayment and savings. The last 30% can be spent on the stuff that makes life fun, like eating out, going to the movies, or other hobbies. If you’re trying to fast-track your homebuying timeline, you might want to switch up this budget and, instead, save 30% and spend only 20% on fun stuff.

Find a reliable source of funding

The next thing you will want to do is find funding that can be relied on. Mortgage funding is a diverse and complicated topic, with options changing depending on your status as a homebuyer and the location where you want to buy (more on that in a minute).

Whether you’re looking for VA loans in California, or a new homebuyer bank loans in Texas, the most important thing to focus on is the interest rate. That’s the amount that you’ll pay the bank (or other lending agency) for the privilege of borrowing money from them. The lower the interest rate, the better. Your rate largely depends on your credit score, so it’s a good idea to buff that up by paying your credit card bills on time for a while before applying for a loan.

Save up for a down payment

The next important step you’ll want to make is saving up for a down payment. Interest rates aren’t just dependent on your credit score; the amount of money you can initially put down can also help lower your interest rate, and, because you’ve already paid off a portion of the total price, lower your monthly payment.

It’s a good idea to have at least 15%, but ideally closer to 20% for a down payment on a property. However, depending on the type of loan you apply for, this can vary. Sometimes you can make a much smaller down payment. If you can help it, it’s always a good idea to put down more money – so it might be worth working a little extra to save up for that.

Pay attention to the housing market

Be careful to look closely at the prices of housing in your desired area prior to buying. Housing markets fluctuate with the times, so it’s not a good idea to buy a place at peak prices – you might be able to get a better deal if you just hold out for a few more months.

It’s also important to note the trends in your particular area. Is it an up and coming Chicago neighborhood being revitalized? Or is it a neighborhood on the decline where your investment is likely to rapidly depreciate? These distinctions are crucially important, so pay special attention to market prices prior to making any final decisions.

Protect your investment

Once you do decide to purchase, the next thing you’ll need to do is protect your investment. That means keeping money ready for upkeep, and investing in your neighborhood’s well-being too. Your home is an investment that you’ll likely hold on to for a long time, so prioritizing its growth in value is definitely in your best interest. Especially if you plan on passing it down to your kids, having a substantial amount of equity in your home is a must.

Financially preparing for purchasing a new home is challenging. Taking it step by step and planning carefully is the key to success.

How America’s Wealthiest Families Lost Their Money

wealthiest families

While the successes of the wealthiest families in America help to paint a picture of the roadmap to financial freedom and a life of abundance, the failures of some of these families can be just as effective in guiding one’s decisions as it relates to wealth creation and wealth management. Many families have built mountains of wealth, but many have also lost such wealth.  Continue reading

Is Trading More Profitable Than Investment?

Both trading and investing can be considered as two different methods of attaining profit in financial markets. Both traders and investors look for profit by taking part in the market. The only obvious difference between the two groups is that investors tend to seek larger returns over an extended period of time, while traders seek smaller, more frequent profits over a much shorter period of time.

Comparing Trading With Investing

Both trading and investing require a degree of emotional discipline as well as patience to execute correctly. However, the time required by a trader and an investor differs in many aspects. In the case of traders, they remain active, potentially executing several trades throughout the day if they find positive trading opportunities.  Investors, on the other hand, work on a long –term basis, as it does not require constantly watching the positions of his/her portfolio.

Comparing the potential returns of trading and investing is like comparing oranges to apples, as there are no definitive ways to answer it. One of the biggest advantages that trading has over normal investing is the phenomenon of rapid compounding of gains. For instance, if a trader starts out with $50000 with a 10% profit every month, the trader starts with $55000 in the next month, followed by $60500 the following month if the profit level remains the same.

Thus, through trading, a trader tends to make gains on prior gains, as well as on any additional deposited capital.   This serves as a striking advantage that trading has over long-term investing.  This is not the case with investing where traders have to wait years for profits to be realised and cannot use the said profit to generate even more gains.

Using IQ Option for Trading

Many potential traders avoid trading, citing a lack of reliable brokers as the prime reason behind their decisions. However, IQ Option, a Cyprus based brokerage service has become a popular option for traders looking to diversify their portfolio. Along with binary options trading, IQ Option offers a mix of forex contract for Differences, Stock CFDs, cryptocurrency CFDs, commodity CFDs as well as digital options, in a single, seamless platform.

As mentioned before, IQ Option offers a mix of forex, cryptocurrency, stock and commodity markets for traders to trade in. It offers Binary Options on some stocks, forex pairs and on some commodities. Because of recent changes in regulatory directives, it offers digital options for EU-based traders who are prohibited from trading Binary Options by law.

As traders require some skill and experience before attaining success, IQ Option offer a fully functional demo account for traders to get the hang of it. This demo account has all the features of a real account, with virtual money for traders to hone their skills. Novice traders can thus use this feature to get a feel of the trading market in real time, with options to restore the original virtual balance at any time.

IQ Option is thus a secure online broker which caters to both small and large participants in the market. The minimum deposits for IQ Option are as small as $ 1 USD with trades starting from $1 as well.Founded in 2008, the platform has more than 25,580,000 as of 2020.


Both trading and investments have their own sets of advantages and it cannot be definitively said which one is better. Ultimately, it depends on the skill level of the trader or investors involved, in order to be successful. With the emergence of online brokerage services such as IQ Option, the online trading industry has provided access to more traders worldwide than ever before, making trading one of the most accessible and profitable aspects of dealing in the financial market.

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