How to detect Distress- Check List for self-test
- Pressure paying creditors on time
- Arrears in tax payment
- Cash is gone as soon as it comes in
- Not making a profit for several months in a row
- Price Discounting to make the sale
- Overdraft at its limit or exceeding
- Bank refusing requests for a temporary overdraft extension
- Missing EMI
- Low stock or holding back on purchases
- Cutting back on staff
- Continual capital/loan injection.
- Servicing the loan consumes a significant proportion of gross profits
Here are some more personal signs.
- Feeling sick or finding it hard to sleep
- Short-tempered and grumpy
- Borrowing money from family and friends
- Blaming others for your predicament
- Changes in lifestyle, habits, or appearance
- Hoping for breakthrough
- Desperately hunting for quick money
