3 Signs That A Company Is Going Under

on Monday, 25 April 2016.

Sometimes companies can go under without warning however more often than not there are a few tell-tale signs that you should look out for ...

Bad Payment
First and foremost is bad payment this can take the form of late or incomplete payments.

Staffing Changes
Large staff changes in a short space of time especially key staff upping and leaving with the owner/director getting involved in the work that the key staff used to do.

Sudden Change in Purchasing
Last but not least, a sudden increase or decrease in goods or services purchased. The reason can be hard to analyse and will be different for every business and every sector. But a sudden substantial increase in purchasing can indicate that the company is imminently going under. This is commonly done and means that if the debt is written off the company can walk away with a substantial value of goods and equipment without paying for it!
Sudden drop in purchasing means one of three things:-

  1. No money to buy the goods or services
  2. Purchasing elsewhere
  3. Lost business and therefore do not need the goods or services

Marketing Services

In addition to business credit checks we provide a wide range of business services including business to business data cleansing and a wide range of other business services.