Small businesses overwhelmed by mounting debts 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 Enterprise Ombudsman (ASBFEO) on Monday released its new guide, billing it as a starting resource for concerned business operators.
The document serves both debtors and the indebted, with Ombudsman Bruce Billson saying a growing number of small businesses are fearful they won’t be paid themselves.
“We have seen a 50% increase in calls from small businesses worried a supplier might be insolvent or their own business might be heading that way,” he said.
For debtors, the Better Help Guide – Small Business Debt provides a no-nonsense starting point: paying part of what you owe, and are able to pay.
This can build a foundation for a payment plan, allowing businesses to negotiate favourable repayment terms without resorting to debt collection agencies or legal action.
And for businesses owed money, the one-page guide celebrates the art of dispute resolution before taking stronger enforcement action against the payee.
“It is in everyone’s interest to avoid expensive debt collection services and formal legal action if possible,” 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 dealing with debt, it’s not just the health of your business you’re dealing with,” it says.
“Debt can have a heavy toll on small business owners and it is important to look after yourself.”
It points small business owners to Beyond Blue’s NewAccess for Small Business Owners, a free mental health coaching program designed for small business operators.
Businesses can access the new guide via the ASBFEO website.
Never miss a story: sign up to SmartCompany’s free daily newsletter and find our best stories on LinkedIn.
Senior Business Journalist
Focused on the small business sector, David’s work covers the political, regulatory, and economic issues facing Australian entrepreneurs. Prior to joining SmartCompany, he was a reporter for Business Insider Australia. You can follow him on LinkedIn.
