Alternatives to Redundancy & Debt Recovery Advice
How to reduce debt in business and alternatives to redundancy
Have you found the current climate a little more challenging than a few months ago? Well, don’t feel alone. So many businesses are experiencing similar circumstances, but we have been able to help them with some good advice. Some of this advice may help prevent compulsory redundancies and all of the associated discomfort that can cause.
Working together as a team of experts, the Employment and Business Recovery Teams may just be the friend you need right now. Their advice could make all the difference to you and your business in these challenging times. Let us briefly explain how.
Alternatives to redundancy
When it comes to your staffing, there are a number of steps that an employer can take to reduce costs. These could range from removing discretionary benefits packages and freezing pay, to the more subtle approaches, like offering flexible working (bringing about a reduction in the working day/week), job sharing and secondment.
With each of these changes, it’s vital to assess and understand the potential financial gain against the more intangible risks, like impact on staff morale and impact on your reputation in the recruitment market.
It is also important to take advice from someone who understands your position when considering any changes that may affect your employees, not least because these may be contractual changes that require careful consultation.
We can help guide you not only in what may be legally possible, but also help critically assess the risk/reward of each potential option.
How to reduce debt in business
As the common adage goes, “cash is king.” Without an inflow of cash, SMEs may start to struggle. In our experience of business to business debt, an SME that is struggling will start to change the way it pays its suppliers and customers. It may prioritise who gets paid and when. It may request an extension to your payment terms, or it may pay you as and when.
A recent survey Escalate Report showed that 96% of SMEs regularly experience bad debts or other commercial disputes. Almost 7 in 10 are affected by late payments beyond their agreed terms. Half wait for more than 60 days. This has a knock on effect on SMEs sometimes leading to difficult decisions.
What can you do? The link above contains useful and practical steps but this is the part in a nutshell:
- Make your terms of business clear and agree expectations from the outset;
- Address any late payment issues early, being firm but fair; and
- When you feel the other party is unlikely to change their mind, get expert advice and assistance.
We have an experienced debt recovery team, dedicated to ensuring that you are paid what is owed to you. We can offer a range of funding solutions for you, including “no win no fee” (in cases that meet our risk criteria) but we will always look for the commercial solution for you.
If you have unpaid invoices, a dispute with one of your customers or suppliers or feel you should look at reviewing your staffing costs, call us.
Why not contact us to discuss the issues and see if we can assist you in getting back to a healthy financial position.