Article by listed accountant TYRONNE NEL
Not being able to pay your accounts on time is probably the most stressful situation an entrepreneur could ever experience. What most entrepreneurs don’t realise is, it is in fact, a very common occurance effecting all entrepreneurs at some point in their business lives.
So there you have it, it is not only you, it happens to everybody!!
The important thing to remember is, if you find yourself in this situation it can be managed through effective communication and a clear commitment to payment deadlines.
While no creditor is too exceited about not being paid on time, they will be more agreeable and withhold the lawyers letters if you follow the very simple guidelines below.
So there you have it, four very simple steps to get yourself out of your financial predicament!
It is important to remember that the majority of creditors would prefer to avoid the use of litigation as it is costly and very often does not yield the results they expect, leaving them with an unpaid debt and a hefty lawyers bill.
Therefore by being proactive and communicating with your creditors you will buy time to restructure your debt and by honouring your commitments you will build credibility with them.
Also don’t forget, your creditors have bills to pay too and will be relying on your monthly repayments to ensure that they too do not get into financial trouble.
At Phezulu we do more than just mentor clients with creditor problems, we are your “one stop SME shop”, assisting with everything from Accounting, Business Management, BEE, Consulting, Company Registration to Payroll and Mentoring.
For more information please visit our website www.phezulu.net or give me a call 001 003 8558.