A short-term Individual Voluntary Arrangement (IVA) can be a helpful solution for individuals facing financial difficulties, especially if you are a small business owner looking to make some extra money. IVAs provide a formal alternative to bankruptcy and can be a useful tool in managing your debts.
Here's what you need to know about short-term IVAs and how they can benefit you as a small business owner:
What is a Short Term IVA?
A Short Term IVA is a legal agreement between you and your creditors to repay your debts over a fixed period, usually around 6-12 months. It allows you to make affordable monthly payments based on what you can realistically afford, giving you the opportunity to get back on track financially without the severe consequences of bankruptcy.
Advantages of a Short Term IVA
1. Protects Your Business: By entering into a Short Term IVA, you can protect your business assets from being seized by creditors, allowing you to continue operating and potentially even grow your business.
2. Reduced Monthly Payments: With a Short Term IVA, you can negotiate lower monthly payments, making it easier for you to manage your cash flow and cover your business expenses.
3. Legal Protection: Once your Short Term IVA is approved, your creditors are legally bound to stop pursuing you for payment, giving you peace of mind and the breathing space you need to focus on running your business.
How Can a Short Term IVA Help You Make Extra Money?
A Short Term IVA can provide you with the financial relief you need to refocus your efforts on growing your business and increasing your revenue streams. By restructuring your debts and reducing your monthly payments, you can free up cash flow to invest in new opportunities, expand your product offerings, or even hire additional employees to help scale your business.
Tips for Managing Your Short Term IVA
1. Stick to Your Payments: It's crucial to make your agreed-upon monthly payments on time to comply with the terms of your Short Term IVA and ensure its success.
2. Communicate Openly: If you experience any changes in your financial situation that may impact your ability to make payments, don't hesitate to communicate with your insolvency practitioner to explore alternative solutions.
3. Stay Committed: While a Short Term IVA may require sacrifices in the short term, remember that it's a temporary arrangement designed to help you get back on your feet and build a stronger financial future for your business.
In conclusion, if you're a small business owner looking to make extra money and struggling with overwhelming debts, a Short Term IVA could be the right choice for you. By taking proactive steps to address your financial challenges, you can pave the way for a brighter and more successful future for your business.