I’ve been refused credit from suppliers
If creditors have stopped extending a credit service to you, it can mean that they you have been flagged as a risky debtor. If you’ve missed or been late in making payments, then a creditor will naturally assume that your business isn’t going well and they are protecting themselves against non-payment.
Why should I be concerned if a supplier refuses me credit?
Being refused credit by suppliers on time can be an early sign that your business is heading into difficulty; don’t bury your head in the sand. Now is the time to take an honest look at the figures and get some advice for future-proofing. As a sole trader, your personal finances aren’t distinguished from your business finances, so if one’s in the trouble, so is the other.
If you’ve always made payments on time, perhaps your supplier’s business is hitting a rough patch and they are wanted payment quicker to help their cash flow. This has a knock-on effect on your cash flow, meaning you have to find money sooner each month to pay suppliers to acquire stock or supplies.
How can McAlister & Co help if I’ve been refused credit from suppliers?
McAlister & Co are always available for free, initial and confidential advice on sole trader debt. If you’ve been refused credit by a supplier because you’ve been late making payments and you think this is a trend that’s going to continue, then it’s sensible to have a look at some debt solution options.
If a supplier has refused you credit and this has had the knock-on effect of slowing down your business so that you are missing payments to other creditors, you may be eligible for an IVA or a DMP, both of which would reduce monthly outgoings and provide you with some breathing room to get your finances back under control.