ADVICE ON WHAT TO DO IF YOU ARE BEHIND IN PAYING SUPPLIERS

This advice is for newsXpress members who are seriously behind in settling accounts, to the point where they have received final notices and, most likely, have received debt collector requests.

We wish we did not have to provide this advice but we do. We are publishing it now to include in our weekly email so it is available for now and into the future.

The entire newsXpress ecosystem is affected if you do not pay suppliers on time. Any reputation your action, or inaction, creates can reflect on newsXpress and all member businesses. The sooner you talk with us the better.

If your business is not settling your accounts on time you have a legal obligation to consider action that may be necessary such as placing the business into external administration or calling in liquidators. It is important you get advice from your accountant on these formal steps.

If your situation is not at that stage and you are behind with suppliers, here is our advice on what to do.

1. Own your situation. If you are short of cash, it is on you. Sure you may have excuses, stories or other factors out of your control to point to. The reality, however, if you control the level of indebtedness you take on so your situation is on you. If you do not own your situation, the future is not great.
2. Talk to your suppliers. Explain to them your situation. Be truthful. Talk to them before it gets too bad. Not talking to them, ignoring calls and correspondence is a BIG mistake. Follow these steps:
1. Work out what free cash, cash flow, you have available weekly to service a payment plan. This must be an amount you are 100% certain you have access to. We can help you work this out.
2. Propose a payment plan that sees the supplier debt cleared in a reasonable time.
3. Pitch that you will no on COD for all orders in the meantime.
4. Put your proposal in writing.
5. Make your first payment at the time of making the proposal.
3. Put barriers in place to your buying. Make sure that any inventory you buy is 100% necessary for the business at that point in time.
4. Trim your labour costs as much as possible.
5. Setup a trestle table in the business or out the front for a clearance sale. The goal here is to convert slow moving stock you long past paid for into cash.
6. Refresh the business with product placement changes, better displays and more engaged behaviour with customers. This is designed to give the business fresh and vibrant feel that can help with your mindset through what can be a debilitating time.
7. Leave no stock at home, in the shed or elsewhere. Get it working for you.
8. Talk to us. We have a track record of providing honest advice as well as practical help in situations like this. We have also navigated these types of issues with suppliers on behalf of some members. We will wan facts, the truth. We will respond to you with our truthful assessment of what we can and cannot do for you. We will respect your confidentiality.

The biggest mistake is to wait for something to happen and to not talk to your suppliers and us.