Small businesses overwhelmed by mounting debts can now access a free one-page cheat sheet, advising them how to start paying what they owe – and how to request payment without damaging business relationships.

The Australian Small and Family Enterprise Ombudsman (ASBFEO) released its new guide on Monday, presenting it as a starting resource for affected business operators.

The document serves both debtors and debtors, with ombudsman Bruce Billson saying a growing number of small businesses are concerned about not being paid themselves.

“We’ve seen a 50% increase in calls from small businesses concerned that a supplier is insolvent or that their own business is heading in that direction,” he said.

For debtors, the Best Help Guide – Small Business Debt provides a simple starting point: pay part of what you owe and are able to pay.

This can lay the foundation for a payment plan, allowing businesses to negotiate favorable repayment terms without resorting to debt collection agencies or legal action.

And for businesses that owe money, the one-page guide celebrates the art of dispute resolution before taking tougher enforcement action against the payee.

“It is in everyone’s best interest to avoid, where possible, costly debt collection services and formal legal proceedings,” the document states.

Dispute resolution assistance services are available through state Small Business Commissioners.

Although brief, the one-page guide also reiterates the importance of protecting mental health.

“Remember, when it comes to debt, it’s not just the health of your business that is at stake,” it says.

“Debt can take a toll on small business owners and it’s important to take care of yourself. »

It encourages small business owners to Beyond Blue’s New Access for Small Business Ownersa free mental health coaching program designed for small business operators.

Businesses can access the new guide via the ASBFEO website.

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