>> Quite what you could do differently with HJ.co.uk escapes me.
Avant mentioned cash flow difficulties. I suspect one or more of the advertisers wasn't paying (potential bad debt?) or had stretched payment terms.
Alternatively a creditor could have called in the debt (bank overdraft cancelled for example or a supplier reducing terms from 90 to 30 days, even HMRC).
VAT is one of the worst. You have to pay it even if the invoices you have sent out haven't been paid and that can kill a company with poor debt turn.
A new investor can easily introduce cash to the business or alternatively sell good debt to a bank (invoice finance) to get an instant injection of cash. Of course, this assumes that credit limits are available on the debtors.
Last edited by: VxFan on Thu 16 Jan 20 at 02:41
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