Are You Struggling To Repay Your Business Debts Due To Ill Health?
There are a variety of reasons why a business owner could be struggling to meet its business liabilities. It could be due to adverse trading conditions affecting the business’s performance or problems with collecting in debtor monies.
It could also be due to the ill health of the business owner meaning that he or she is unable to concentrate on the running of the business. This is particularly relevant when it is a small business with very few, if any, staff as the business may be extremely dependent upon the proprietor playing an active role in the business.
It is important that the business keeps those that it owes money to in the picture as opposed to the owner “burying his or her head in the sand”. If the later option is chosen then it is likely to lead to the problem escalating and could reach a point where it is no longer viable to continue to run the business.
For instance, letting the bank know that the business proprietor is seriously ill could result in the bank taking a sympathetic approach to the business’s situation for a period of time. The bank may consider a repayment holiday for a period of time on the likes of a business loan’s repayments thus easing pressure on cash flow. In doing so, the bank may be agreeable to extending the term of the business loan or an increase in the monthly repayments when the proprietor has returned to the helm.
The bank may consider a temporary increase in the business overdraft facility thus helping the cash flow of the business and this may also enable the business to repay some other pressing creditors and meet salaries and wages. Whilst there is no guarantee that the bank will be prepared to help, if you don’t ask you will never find out.