47% of small businesses in the UK spend more than 30 days waiting for payment from customers according to a recent study. The average waiting time is 40.23 days with 14% of UK SMEs listing late payments as their biggest challenge. Late payments from customers and clients can result in cash flow problems and legal action. This ultimately has a negative impact on businesses, slowing growth or even threatening their solvency. SMEs are wasting precious time and resources chasing late payments or being chased for late payments. Whether you’re a business-facing cash flow problems or you’re struggling to pay debts your company owes, The Insolvency Experts can help.
What is a County Court Judgment?
A County Court Judgment (CCJ) occurs when a summons or writ issued by a creditor for an unpaid debt is not amicably resolved. A CCJ is issued by a Court and entitles the plaintiff to enforce the Judgement in one of several prescribed ways. The most common method of enforcement is attendance at the company premises by a bailiff/sheriff, which can cause severe disruption if assets are removed and can lead to the company having to cease to trade. A CCJ will also have an adverse impact on a company’s credit rating which may hinder its ability to obtain supplies without paying upfront. This will place a further strain on cash flow if it occurs. As with all business debt matters, it is important to consult professional support and advice as soon as possible if you receive a CCJ. Dealing with the issue, rather than ignoring it and hoping it goes away, is always the best course of action. If you’re one of the UK businesses that are struggling due to late payments and cash flow issues, speak to The Insolvency Experts. Our experienced professionals can provide solutions to cash flow problems and help your business to avoid similar issues in the future.
Contact The Insolvency Experts
For more information on the professional debt advice that The Insolvency Experts provide, please get in touch. Contact us online and an experienced member of our team will get back to you as soon as possible. Alternatively, call us on 0300 303 8284 to receive expert business debt advice.