Directors of businesses will view and experience a failure to varying degrees and for a number of different reasons. The key is to remain as objective as possible, acknowledge that the business has issues, and seek professional advice immediately. This is something that we do on a regular basis for no charge at all. In the vast majority of cases, we find that the sooner directors seek our advice, the more options will be available to them.
How do I know my business is at risk of failure?
Reasons for perceived failure may be triggered by:
- Loss of a major customer
- A lack of cash
- Legislation changes impacting negatively on ability to trade
- Loss of key members of staff
- Contingent liabilities crystallising
- A change in banking covenants
- Winding-up petitions, county court judgements and other pressure from creditors
The stage and severity of failure will directly impact the options available to the company. If professional advice is sought early on, then the business may be able to continue to trade as normal if the appropriate changes are implemented. These may include introducing new funds to the business by way of the share sale, loans, asset finance, or invoice discounting. Alternatively, we may be able to assist with formal or informal arrangements with your creditors, including Company Voluntary Arrangements (CVA), Time to Pay (TTP)arrangements with HMRC, or payment plans with your suppliers. Should the company be deemed to be insolvent on either cash flow or balance sheet basis, it is imperative that directors adhere to their statutory duties by seeking professional advice as soon as this is recognised. The consequences of not doing this can be far-reaching and negatively impact them personally.
Specialist support from The Insolvency Experts
If you are concerned that your business may be showing signs of failure or need support in any way, contact The Insolvency Experts for free advice from experienced specialists. Call us directly on 03339203308 or contact us online today.