The ABC of coping with energy debt

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/ posted in Business, Business Planning, Finance & Funding, Management / 0 Comments

Electricity and gas are crucial to the day to day running of most small businesses. Get into serious energy debt, and you risk being cut off.

With npower’s energy debt ABC, it’s easy to avoid this stressful situation and keep your business running:A. Acknowledge the problem

Maybe you’ve missed a few payments or ignored some letters.  Don’t panic, just get your head out of the sand.

The first thing to do is look at your cashflow. Have you got delays on money coming in? Could you cut down on your outgoings?

If you don’t already have a money management system, there are lots of free online accounting and tracking tools that will help you analyse your spending.

B. Bring in the expertsNow you know what’s causing the problem, get in touch with your energy provider and explain the situation. If you’re an npower Business customer, speak to our dedicated team of advisors who are experienced in helping customers with energy debt. They will work with you to create an achievable payment plan, and help you make progress with tackling the problem.

Stop non-essential spending and get in contact with your late payers. You’ll find lots of free letter templates for chasing late payments online.

C. Control your cashflowOnce you’ve got a plan in place and you’ve tightened up on your spending, you need to stay in control.

Set aside a bit of time every week to look at your income and outgoings, including any direct debits.  If you don’t already manage your npower account online, that can help you keep on top of your energy payments. npower will never adjust your direct debit without telling you in advance, so you’ll know exactly what your energy cost is.

For more advice on managing business finances, take a look at our article: Master your business cashflow.

Struggling to pay for your energy? There are organisations that can help you. Both Business Debtline and Step Change provide free, impartial and confidential advice on debt and cash-flow issues for small businesses and the self-employed. Get in touch via their websites or give them a call. You’ll be glad you did.

Business Debtline: 0800 197 6026
www.businessdebtline.org

Step Change: 0800 138 1111
www.stepchange.org

Like what you’ve read? Why not join us on twitter @npowerbusiness #energytogrow and Linkedin at npower Business

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