There are many reasons such as theft or fire damage due to which a businessman fails to repay the money to the suppliers. But it is hard to explain them that you are facing some terrible situation because MONEY is important to everyone.
You can ask for some more time BUT if you fail to pay the money you owe on that schedule time too, then they can lead to CCJ. You might not have any idea about CCJ, which is known as a County Court Judgement. We have discussed here everything about this and also shared some ways which can help you to get rid of this problem.
Before we move to the problems, it is your duty to identify the amount you have borrowed from the investor. According to this, you have to choose a reliable option that can help you to cope up with the situation fast. Now, let’s move to the topic…
First, understand what CCJ means and why it is a problem?
What is County Court judgement?
It is a court order which is assigned when someone fails to repay the money he owned from the creditors. To deal with the situation, money provider may register a case against you. Once they registered the case, the judge will analyse the full report and case.
If the court finds it genuine, then they will send you the notice to repay the money within one month. There are two options available for payment:
- You can pay a lump sum amount or approximate amount at once
- You can pay in instalments
It depends on you which method is preferable. When you pay the money in instalment, it will be mentioned in your record, orders, and fines.
Why we should clear off the CCJ fast?
We have discussed earlier that you can pay the money in two ways. Both of the methods is good but remember one thing that the fast you will REPAY THE FAST you will get relief. Try to pay in a single month because it won’t stay for a longer period on record.
In case, you are delaying the payments, it will be going to create a problem in business. If you are running a business then you know the IMPORTANCE OF INVESTMENT. Without funding or investment, you will never able to stand a successful business.
There are a few reasons because of which investor may deny providing funds…
If you make your payment irregular, then it will reflect on your report. And before investing money on business, investor will go through your CREDIT REPORT. And with CCJ, no one will be going to take the risk.
What is the solution?
It may happen that your financial condition is resisting you to clear off the debt fast. But you do not have to worry about it. There are many ways through which you pay off within a month. And the best part is you do not have to disturb your business budget.
Let’s roll eye on it
- Asset funding
This one is the best way to not only paying off the CCJ but you can get investors too. In this, you can use your asset to get money that you can utilise to pay the creditors or to rise your business. Though, it may be risky because you are putting something valuable to you.
- Invoice funding
This one is a bit different from the asset funding because in this, you will receive money against the value of the invoice that you issue. This is far better than the last one because it will help you boost your cash flow without affecting your previous borrowing record.
This one is the easiest way to get instant help. Many loan providers in the UK offer CCJ loans with no guarantor. It would be great if you approach direct lender because they provide instant approval. And the best part is that there is no hassling in paperwork.
You can use any of the above-mentioned ways to get help whether it is related to rising business or to pay the money you owe to the creditors. There is one benefit you will receive from the points shown i.e. you can access them without disturbing your budget.
In this way, you can repay the money and again boost your business. Though, you have to keep patience and have to work hard to stand again. And never hesitate to take a step that can help you to live a life without CCJ.
Description: CCJ is a serious problem but you can beat it with the proper plan to avoid its impact on your business. It would be great if you try to pay the full amount at once.