The Ombudsman, Bruce Billson. Source: Supplied.
Small businesses overwhelmed by mounting debt can now access a free one-page cheat sheet, advising them how to start paying what they owe and how to request payment without souring business relationships.
The Australian Small Business and Family Business Ombudsman (ASBFEO) published its new guidance on Monday, calling it a starting resource for interested business operators.
The document serves both debtors and the indebted, and Ombudsman Bruce Billson says a growing number of small businesses fear they won’t get paid.
“We’ve seen a 50% increase in calls from small businesses worried that a supplier may be insolvent or that their own business is going in that direction,” he said.
For debtors, the Best Help Guide: Small Business Debt provides a sensible starting point: pay part of what you owe and are able to pay.
This can lay the foundation for a payment plan, allowing businesses to negotiate favorable payment terms without resorting to debt collection agencies or legal action.
And for companies owed money, the one-page guide celebrates the art of dispute resolution before taking stricter enforcement action against the beneficiary.
“It is in everyone’s interest to avoid, if possible, costly debt collection services and formal legal actions,” the document says.
Dispute resolution support services are available through state small business commissioners.
While brief, the one-page guide also reiterates the importance of safeguarding mental health.
“Remember that when it comes to debt, it’s not just about the health of your business,” he says.
“Debt can take a heavy toll on small business owners and it’s important to take care of yourself.”
Instructs small business owners to Beyond Blue’s new access for small business ownersa free mental health counseling program designed for small business operators.
Companies can access the new guide through the ASBFEO website.
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