Fill in your details below and one of our friendly consultants will call you back as soon as possible.
  • This field is for validation purposes and should be left unchanged.

Follow us on Twitter

  • RT  @TyronneNel : #SME Advice - It might be late but just remember success doesn’t keep office hours! 2 hours ago
  • RT  @TyronneNel : #SME Advice - Dear entrepreneur, employ the most skilled employees you can afford! Poorly skilled staff are worse for your… 1 day ago
  • Is your business idea viable⁉️ Is there anything you can do to improve my idea’s chances of success⁉️ ✅✅YES! Find… https://t.co/6cxu1bBdJq 2 days ago
  • Owe money to SARS for inaccurate or non-submissions? SARS has become more "friendly" that will help you come right.… https://t.co/EbTCjUXkor 5 days ago
  • Always at the forefront #innovation https://t.co/OXuRCgl5bB 5 days ago
  • RT  @TyronneNel : #SME Advice - Dear entrepreneur, the quickest way for you to become a big business, is to be a BETTER business! Do your ad… 6 days ago
  • RT  @capetownoffice : Tune in to Mix 93.8 FM at 13h30 today & give a huge shout out to Roland Albertson who'll be taking over! #coworkers #… 7 days ago
  • RT  @ProcessMechanic : Ditch the paperwork & start using an online platform to plan and manage the growth of your business. Sessions cover #… 7 days ago
  • RT  @capetownoffice : The latest The Office ! https://t.co/sq8r8ZPb7A Thanks to  @TyronneNel   @carlo_petersen   @harry_kane1  #coworking #capetown 7 days ago
  • Government needs to create an enabling environment for entrepreneurs by developing policies that GROW businesses, i… https://t.co/HPulS5CXJg 1 week ago
  • RT  @BonganiNtuli : Three weeks from opening my spot in Bryanston, kinda scary cos Im not a social person, but ill get it done nonetheless. 😊… 1 week ago
  • RT  @innovsummit : Monday is the last day to catch your ticket to THE leading innovation & entrepreneurial ecosystem platform! Will we see y… 1 week ago
  • RT  @capetownoffice : My fellow South Africans... I feel we need more discussion on this new reality. Holy shit. #PetrolPrice #PetrolPriceHik… 1 week ago
  • RT  @ProcessMechanic : If you're going to pitch or present & your audience is given the opportunity to ask questions, make sure you listen to… 1 week ago
  • RT  @TyronneNel : #SME Advice - Dear entrepreneur, make time for family and friends, don’t forget, they’re walking this road with you 😉 2 weeks ago
  • RT  @Workshop17za : Workshop17 Firestation in Rosebank will welcome more than 300 members to our space opening in November! Reserve your offi… 2 weeks ago
  • RT  @ProcessMechanic : If you're about to launch an app/web service, make sure you have a strategy to grow an audience that you will direct t… 2 weeks ago
  • RT  @TyronneNel : #SME Advice - Dear entrepreneur, the one characteristic that separates successful from unsuccessful businesses is the unrel… 2 weeks ago
  • RT  @TyronneNel : #SME Advice - The Customer is Not always right.... but it’s probably your fault for making them believe they always are.😉 3 weeks ago
  • RT  @TyronneNel : #SME Advice - Customers might pay for your product/ service, but what they are buying is confidence that it will solve a p… 3 weeks ago

Subscribe to our mailing list

* indicates required
 In News

Creditors- what can you do when your small business cannot pay on timeNot being able to pay your accounts on time is probably the most stressful situation an entrepreneur could ever experience. What most entrepreneurs don’t realise is, it is in fact, a very common occurrence effecting all entrepreneurs at some point in their business lives.

So there you have it, it is not only you, it happens to everybody!!

The important thing to remember is, if you find yourself in this situation it can be managed through effective communication and a clear commitment to payment deadlines.

While no creditor is too excited about not being paid on time, they will be more agreeable and withhold the lawyers letters if you follow the very simple guidelines below.

1. Have an honest look at your cash flow and calculate the absolute minimum amount of money you are guaranteed to receive each month.

2. With this amount in mind look at your creditors and prepare a schedule clearly indicating how much you owe and over what period you can settle the debt.

3. Communicate the repayment terms to all your creditors. Yes, some of them will not be happy and still threaten you with legal action, but don’t worry, stick to your guns.

4. Honour the amounts and dates as per your payment schedule! If you ever find yourself in a position that you cannot meet these terms let your creditors know.

So there you have it, four very simple steps to get yourself out of your financial predicament!

It is important to remember that the majority of creditors would prefer to avoid the use of litigation as it is costly and very often does not yield the results they expect, leaving them with an unpaid debt and a hefty lawyers bill.

Therefore by being proactive and communicating with your creditors you will buy time to restructure your debt and by honouring your commitments you will build credibility with them.

Also don’t forget, your creditors have bills to pay too and will be relying on your monthly repayments to ensure that they too do not get into financial trouble.

At Phezulu we do more than just mentor clients with creditor problems, we are your “one stop SME shop”, assisting with everything from Accounting, Business Management, BEE, Consulting, Company Registration to Payroll and Mentoring.

For more information please visit our website www.phezulu.net or give me a call 087 945 0449

Tyronne Nel

Recent Posts

Leave a Comment

Start typing and press Enter to search

Research and development tax incentive for SA businessesMarketing your small business and how to decide on your corporate identity