Managing Your Creditors

You rely on good relations with creditors for the smooth operation of your business. Suppliers (trade creditors), the bank, and statutory bodies such as HM Revenue & Customs (HMRC) all affect the cashflow of most businesses.

When your cashflow is tight, you may not be able to pay your bills on time. If you manage the situation well, your creditors will have more trust and confidence in you than before. But managed badly, the situation can develop into a crisis.

This briefing covers:

• Deciding your objectives for each creditor.
• Identifying your key creditors.
• Handling your bank and the taxman.
• Dealing with creditors if you are in financial difficulties.