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Bad debts can very often cause a perfect storm for any SME business owner, especially those which are totally unexpected i.e the client was ‘good for it’.

This will be a relatively short blog but what we will do is comment on our viewpoint on bad debts here as:

  1. We are at the front end of business issues and find ourselves receiving increasing enquiries across the board, and
  2. Being a business owner is a lonely carry-on and hopefully, this will show its not just you struggling with this issue.

Typically, bad debts arise in a range in differing forms:

The bad debt situation causes real knock-on problems across the board with:

Bad debt wallops cash flow as we all know. My senior partner, when training to be an accountant, said: “CASH FLOW IS THE 7TH WONDER OF THE WORLD”

He added even Robert Maxwell had cash flow, only it wasn’t his, as he pillaged the Mirror Group’s, Pension Fund.

If you are suffering from cash flow issues or looking to avoid customer issues, we would offer the practical tips in terms of assessing someone’s credit risk and or viability:

  1. Always use a credit agency on the person and or company,
  2. Push for PG’s, and
  3. A big one for us is what information is out there using:

So that’s this week’s blog…we would implore you, if you are suffering alone here, Bell & Company are here to help.

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