What to do if your sole-trading business is failing

Facing large amounts of debt can be extremely overwhelming, especially if it is caused by a failing business venture. If you have a sole-trading organisation and it is facing serious financial issues, you need to start looking at your options or you could end up losing your savings, vehicle and/or home.

There are lots of reasons why your business may not be doing as well as you would like. Many factors (some of which are out of your control) can cause it to fall into debt. These can include things like poor market conditions, rash decision-making and a lack of financing.

Whatever the reason for the problems, you are certainly not alone. There are lots of people in a similar position. Whilst you may be feeling like you have no way out, there are options available to you, and here at Wash Taylor, we can work with you to discuss what they might be.

With sole traders, if your business is sinking into deep debt then it could result in bankruptcy for you as an individual. This is especially alarming, because unlike limited companies, a sole trader’s personal assets are in danger of being taken by creditors to pay off the debts. Depending on how much you owe, even your house may be used as a form of payment to cover the debts.

It should be noted that this is an absolute last resort and with the right professional insolvency advice and support you can avoid this devastating ultimatum. We are here to work with you to arrange the best possible solution before you are put in a situation that may entail losing property.

One option available to sole traders, for example, is Individual Voluntary Agreement (IVA). This is a legal agreement between you and your creditors, which gives you protection from them taking further action against you. You will come to an agreement to pay off your debts at an affordable rate and some element may be written off, depending on your individual circumstances.

It is important to know that you have options available, depending on the circumstances of your business and its finances. Walsh Taylor provides business support services to those who are facing financial pressure and difficulties.

Our team of experienced specialists, based in Leeds, Harrogate, Bradford and Darlington, can offer you solutions on how best to deal with your company’s cashflow issues and advise the best way forward.

If you would like some free advice on your business’s financial problems, please feel free to call us for a chat and arrange a meeting today. Get in touch now on 03300 244 660.