Prioritising your key business suppliers
Self-employed IVAs are flexible – so if you owe money to your key business suppliers, you can arrange to pay them first so you can carry on trading. This is one of the reasons why self-employed IVAs are so popular.
In the alternative of Bankruptcy, it is likely that your existing business/trade suppliers will no longer supply to you, which is likely to result in you not being able to carry on trading.
By entering a self-employed IVA, you can prioritise certain creditors or suppliers, so your business can continue operating as normal.
The first thing to do is to decide which of your business or trade suppliers you need to keep paying in order to continue trading.
There may be some suppliers you have used in the past, but no longer use. With these, you will just need to check if they have any ‘retention of title’ over the goods supplied to you.
‘Retention of title’ is where they have the right to repossess the goods if you don’t pay them in full. If they do have ‘retention of title’ and you need to keep the goods, you can choose to make payments to that supplier in full so you don’t risk losing the goods.
If the supplier doesn’t have ‘retention of title’, the supplier could be included in your self-employed IVA as a creditor, and you won’t need to pay them.
There may also be some suppliers who you still need to use in the future – maybe because there are a limited number of suppliers in the market, or that supplier offers the best value for money.
In that case, it’s worth trying to negotiate a repayment arrangement with the supplier, so they know they will be repaid in full. We can negotiate with your supplier on your behalf if you which.
You will have an allocation set aside in your monthly cash-flow to repay any ongoing suppliers in full. Hopefully this will mean they will continue to supply to you, so you can continue trading.
Let us help you
We understand the importance of continuing to trade because you need to protect your livelihood.
Creditors also understand the importance of this – by continuing to trade, you can earn money to pay into your self-employed IVA. That’s perhaps why 85-90% of our associated company’s self-employed IVA proposals are accepted.
If you’re self-employed and struggling with your debts, let us help you.
You can get in touch with us by calling FREE on 0800 280 2816, or by requesting a callback by completing and submitting our online form – click on the ‘Get advice now’ button below.
When you call us, our friendly debt advisers will go through all your options with you, and help you choose the debt solution that is best for you and your business.
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