While there has been signs of business recovery in wake of the GFC, don’t be fooled into thinking that all businesses are out of the woods.
Recent data from the Australian Bankers’ Association, ASIC and the credit brokers show that there’s another wave of bad debts, administrations and insolvencies pending in small business land.
ASIC’s latest data on companies entering external administration for February 2010, was 827 which was higher than 2009 at 796 – with company insolvencies hitting 1159 nationally.
Australian Business Debt
Consider alternative ways to control your bad debt levels.
- Make yourself aware of the risks of preference payments within six months of liquidation. A liquidator has the ability to see preference payments as repayable if they can prove it’s an unfair payment over another creditor
- Speak to your industry body for legal counsel and your rights regarding debts
- Try to get upfront part payments, and encourage your clients to do the same in order to pay suppliers in a reasonable time frame
- Keep talking; keep in mind that accounts people can be your best friends in terms of getting some money to you
If you want to act fast and get your debts under control, consider consolidating your business debts into a debt consolidation loan.
Business consolidation loans help business owners manage their finances and allow you to take multiple debts and combine them into one consolidation loan. Another great thing about a business consolidation loan is that often you can get a lower interest rate and consolidate debts with higher rates into the one consolidation loan, at the lower rate.
To learn how you can consolidate your business debts, call the Australian Lending Centre today on 1300 138 188, or simply fill in an express enquiry form to your right and a debt consultant will contact your shortly.