Published: 03 February 2010 in Independant Retail News October 2009
I've had a phone call from one of these companies telling me they can get rid all of my debt problems. Is there a catch?
Many retail businesses are finding things very tough at the moment. The full effects of the general downturn in the economy have taken time to filter through to this sector but the time between now and Christmas is when any cash flow problems will have their biggest effect.
Business owners will be striving to keep their shelves fully stocked for the run-up to Christmas but for some people this will be a very difficult time. The bills will seem to get bigger and there seems less time to pay. Debts can build up and there often seems nowhere to turn for help.
In response to the general trading conditions there has been a flurry of adverts on TV and in magazines from companies that promise to remove the headaches that mounting debt and cash flow problems can cause. Often the answer seems simply to call a free phone number and the issues will magically be taken away.
Chances are that if you have not seen an advert you will have received a sales call from any number of companies that say they can get rid of general debt, credit card balances, personal loans and even companies that say they can prove you have been miss-sold credit insurance and can obtain compensation.
So what is the reality, and what should you do if you find yourselves in need of the kind of advice and services these companies offer?
Firstly, remember the old but true saying, if it sounds too good to be true, it probably is. While many companies offer genuine advice and assistance for businesses in times of adversity, there are as many for whom this is a numbers game. They rely on calling 100 businesses and getting through to one or two at exactly the right time and take advantage of that situation. Remember the following if you receive such a call:-
· Always speak to your accountant first if you are experiencing trading problems
· Never pay money over the phone to one of these companies
· Ask them to send someone out to see you face to face
· Always ask their fees before you give them any of your details
· Never sign a contract or agreement without getting someone else to read it first
It is worth considering the fact that much of the information about what to do if you have debt issues is available free on the internet. There are many firms that do not charge any up front fees for advice given.
On occasion, the financial circumstances of a business do change to the point that some difficult decisions need to be made. At these times the most important advice of all is never make any decision under pressure or duress. Take a step back and consider all of the options given to you by the people that know your business best of all. A hasty decision made under pressure can often be one that leads to problems later on.
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