Life as a sole trader has never been easy – working long hours and often not suitably rewarded. However operating as a sole trader can bring greater flexibility and the benefits of being one’s own boss!
Sole traders do however need to be aware that they are in a vulnerable position with regards to creditors, as unlike a Limited Company which offers a certain protection – sole traders have unlimited liability and this can be a frightening prospect if business starts to slow down. Personal assets such as savings, cars and even homes are at risk if things go wrong.
When income is reduced, debts are mounting and no big project or paycheck in sight then sole traders are best to discuss their options with a Global IS expert early on to prevent the situation deteriorating.