It is essential for companies to seek business advice if they find themselves in financial difficulty, Frances Coulson, president of insolvency trade body R3 has emphasised.
She explained that burying heads in the sand is not an option when the future of a business is at stake.
“The first stages of recovery are the most difficult time for businesses; it takes time before a return to growth translates into tangible relief for business owners,” she highlighted.
Ms Coulson pointed out that as soon as there are signs of growth, creditors often become more aggressive in their pursuit of anyone who owes them money.
Last month, R3 revealed that a record number of individuals are currently in financial distress, with eight million individuals expected to go into their overdraft.
Two million expect to end up in an unauthorised overdraft position, while five million have concerns over the security of their job.
- Running a Business News from Lawpack: Get expert advice on the practicalities of setting up a business with Lawpack’s Running Your Own Business Guide
Published on: July 28, 2011