As any small business owner will know, keeping on top of your finances can be tricky.
As well as all the regular expenditures, there are always unexpected costs, bills to pay, and invoices to settle.
Cash flow becomes essential, although it’s not always easy to manage. So what happens when you end up with debts? We take a look at how to deal with Global 4 Communications debt and, as well as what options are available for managing them.
What is Global 4 Communications?
Global 4 Communications Ltd is a private limited company that provides and installs business telephone systems. First incorporated in March 1998, the firm has over 20 years of experience providing telecoms solutions to small- and medium-sized businesses across the UK. They’re one of the leading companies in the country.
Over 500 organisations use Global 4 Communications for their telecoms systems. The founder, Nigel Barnett, has been with the company since its inception, leading them to be the market force they are today. One of their key incentives is providing a greener telecoms service, making sure to reduce their carbon footprint with a variety of incentives.
If you own an SME, there’s a good chance that you’ll have heard of the company before. And, if you’ve done business with them, there’s the possibility you will have some debt with them.
What sectors do they work in?
As Global 4 Communications has grown, they’ve expanded their reach into several different sectors. According to their website, they operate in the following industries:
- Estate agencies of all sizes. They help these businesses handle the volume of calls they receive.
- Retailers. Whether it’s for internal or external communications, they can help.
- Pharmacies. Customers need a quick and clear response, and Global 4 Communications help provide one.
- Dentists. As new technology is introduced, businesses of all types need to upgrade.
- Schools. The switchboards at schools never stop lighting up, so they need an effective solution.
- Charities. Organisations of all sizes need an effective telecoms network.
So, for business owners in these industries and more, it’s possible you will have commissioned Global 4 Communications home telecom ltd to do some work for you.
What is the company’s background?
If you have debt with a company such as Global 4 Communications, you’ll want to make sure that they’re a legitimate company that will deal with you in a fair and responsible manner. Therefore, it’s useful to know about how the organisation is set up and monitored.
According to Companies House, Global 4 Communications Limited is a private limited company with the company number 03526932. They have four directors, and their filing history is up-to-date.
Global 4 Communications’ Horsham address is Global House, 60b Queen Street, Horsham, West Sussex, RH13 5AD. You can also contact them via phone on 01403 272910. For accounts payments, including Global 4 Communications direct debt setup, you can email email@example.com.
The company is also ISO Certified, showing that they’re a credible company whose products meet customer expectations. As such, when you’re dealing with Global 4 Communications debt, you will be treated fairly and in accordance with rules and regulations.
What happens if I have debt with Global 4 Communications?
If you’re a small business owner who has dealt with Global 4 Communications, it’s likely that you’ll have an agreement on the terms of payment for the work they’ve done. You’ll usually need to pay an invoice within a certain amount of time or make regular repayments until your account is clear.
But what happens if cash flow becomes an issue and you can’t pay? It’s important that you make the right decisions here, as you can face serious consequences if you don’t.
If your debts are significant and your business is unlikely to recover, you should cease trading immediately. You’ll need to notify HMRC of this, as well as all the people you owe money to. If you continue trading even though you can’t pay your bills and your debts outstrip your assets, you could be charged with wrongful trading.
You have no real way of hiding your company’s situation, as your creditors can take you to court and force you to go into liquidation. During this process, all details of your business finances will be revealed.
Global 4 Communications Complains
Of course, there could be instances where Global 4 Communications have acted improperly. In such instances, you’re able to make a complaint against the company. As per their complaints procedure, you can contact them in writing or by email to formally complain.
Although they aim to solve complaints within 10 days, it can take up to 8 weeks. You also have the option of contacting CISAS if the complaint reaches a state of deadlock. They are an independent organisation that helps companies with 10 or fewer employees. CISAS will help both parties reach a resolution to the complaint.
What happens if my business cannot pay the debt?
If your business cannot pay its debt, there are several possibilities that can happen. Although some creditors will allow you extra time to come up with the funds, it’s not always feasible to do so. Similarly, other businesses have their own cash flow concerns, so they may not grant an extension.
In most circumstances, your company can be wound up (liquidated) if it cannot pay its debts. Usually, this happens when your creditors (the people or organisations you owe money to) can apply to the court to make you pay your debts.
Obviously, this is far from an ideal situation, as you could end up losing your business and struggle to get future funding if you want to start another one. There are a few actions that your creditors can take when it comes to liquidating your company. This includes:
- Requesting a court judgement
- Making an official request for payment, known as a statutory demand
- Issue a winding-up order.
If you have debt with a company such as Global 4 Communications and you cannot pay, you could face one of these actions. But what does each one mean?
What if I get a court judgement?
A County Court Judgement (CCJ) against your business is essentially a court order forcing you to pay what you owe. Generally, creditors will only attempt such a measure if they’ve exhausted all other methods. So, if you’ve been avoiding debt collection agencies or the original company, you run the risk of being issued a CCJ.
Once you receive the court judgement, you have 14 days in which to act or respond. There are several things you can do:
- Settle the debt. You’ll have to pay your creditors what you owe them.
- Reach a repayment agreement. You might choose a CVA (company voluntary arrangement)
- Enter administration. This can prevent you from facing further legal action, and no one can apply to have your business wound up. They will try and keep your business afloat and settle your debts.
- Liquidate your company. You can wind up your business yourself, selling off assets to pay creditors.
- Challenge the judgement. You’ll have to provide reasons and evidence for why you don’t have to pay tour debt.
What if I get a statutory demand?
If you receive a statutory demand from a creditor, they’re basically warning you that if you don’t pay or come to another arrangement, they’ll start proceedings in court to make you bankrupt. Again, this is a pretty serious step to take, and often only done as a last resort.
Once you’ve received a statutory demand, you have 21 days to respond. Again, you have several options to choose from when dealing with this matter:
- Pay the creditor what you owe them.
- Come up with an arrangement (such as a CVA) to repay the money within a certain structure.
- Put your company into administration.
- Liquidate your company yourself.
It is possible to stop your creditors from trying to wind up your business, however. You’ll need to apply to the court to stop these measures, and you’ll need to do so within 21 days of receiving the statutory demand.
If your company has less than £120,000 in share capital, you can apply to your local court. However, if your share capital exceeds £120,000, you’ll need to apply to the High Court.
What if I get a winding-up order?
If a CCJ and statutory demand don’t resolve the matter, your creditors can appeal to the courts to have your business liquidated. This winding-up order is about as serious as it gets, and you’ll likely need to go to court if you receive one.
If the courts accept the petition for a winding-up order, a date will be set for the court hearing. You’ll need to attend this hearing, and your powers as a director will cease when you receive the order. However, control of the company can be given to someone else until that date.
If the court hearing determines that you cannot pay your debts, the company will be placed into receivership. Essentially, a court-appointed receiver will be in charge of winding-up the company. Your business accounts will be frozen, and your assets will be sold. The receiver will attempt to pay off any debts the company has with these funds.
You have just five days to respond to cancel a winding-up order. If you repay your debts before the court hearing, your creditors can withdraw the petition.
What are my options for dealing with Global 4 Communications debt?
As you can see, there are some fairly serious consequences for falling behind with your debts. Thankfully, there are several options available when you have debt with Global 4 Communications or other organisations. We’ve outlined some of the main ones below:
- Prioritise. If you have some available cash, but not enough to pay off everyone, you’ll need to prioritise. You can determine which are the most pressing debts and pay those first. This will buy you some time to take the next steps.
- Contact creditors. You might be able to make arrangements with your creditors to repay your debts. You’ll have to have a fairly comprehensive plan for repaying them, and they don’t necessarily have to accept it.
- Consolidate your debt. If you’re struggling with multiple debts, you might want to consider a debt consolidation loan. Essentially, you take out one big loan and use that to pay off your creditors. You’ll then have one regular repayment to make, and it could be on better terms than you have with your current creditors.
Where can I get help for Global 4 Communications debt?
It’s never easy trying to deal with debts, particularly if you don’t have much experience with how everything works. Thankfully, there are several resources you can turn to for help with the situation. We’ve outlined some of the main ones:
- Business Debtline. This organisation provides free, impartial and confidential advice about how to manage debt. They can help you manage your current situation and come up with a plan for dealing with your debt.
- StepChange. The debt charity has all kinds of resources on dealing with debt. They mainly focus on personal finance, but they do have pages on business debt.
- Government website. If you’re looking for full details about the various aspects of business debt and bankruptcy, the UK government website has pages of information.
Running a business is difficult at the best of times. Yet if you run up debts with companies such as Global 4 Communications, you could soon find yourself with many problems. Although it’s hard to know what to do, it’s essential to educate yourself on the potential courses of action creditors may take.
No matter how dire the situation may seem, there are several ways you can get help. Whether it’s financial assistance or other forms of support, you have options.