Warning Signs / What to Look out for
If your business is starting to struggle, it’s best to let us know early as the sooner you contact us the sooner we can help find a solution together.
Keeping an eye out for the early warning signs could help you quickly spot any potential worries before they become problems.
Examples of warning signs which may individually or collectively indicate financial difficulties include:
- Regular returned items.
- Missed loan repayments.
- Late payment to creditors, including HMRC.
- Discontinuation of regular credits.
- The commencement or continuation of certain proceedings, such as:
- County court judgment.
- Winding up petition.
- Other court proceedings
- Regularly needing to increase borrowing.
- Repeated rescheduling of debts.
- Frequent cash withdrawals on a business card.
- Persistent informal overdraft and/or temporary limit increases.
- Large increases or decreases in turnover.
- Prolonged period trading at a loss.
- Sudden changes in management, ownership, or loss of key personnel/customers.
- A product or service taken out is being used for a purpose other than those agreed by the Bank.
- Inability to keep to conditions or covenants set out in agreements.
- Sudden downgrade to credit rating/credit worthiness for the business.
Even with all the best intentions you can’t predict everything, so it’s a good idea to be aware of situations that could catch you out:
- Loss of key staff
- Emergencies such as flooding or fire
- Reputational challenges
- Increased competition in the market place
- Political changes both internal and external
- Cyber Attack
- Late payment from debtors
If you feel you are experiencing financial difficulty or have concerns about any of the above within your business please Contact Us