Do you need Advice, or want to close your business?

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To help us provide a quote, we ask for a few estimates on your current company finances.

Don’t panic if you don’t have the numbers to hand; just give us your best estimates and our
team of financial experts will be able to help you gather the exact figures in due course.

Number of Creditors?


20


Amounts Owed?
Estimate how much you owe these 20 creditors.


£500K



£500K



£500K



£500K


People that are owed money

Creditors is another term for the people and organisations you currently owe money to.

These creditors may range from loan companies, to suppliers, to HMRC.

Knowing the number and type of creditors currently owed to allows us to assess an order of priority for dealing with all of your outstanding debts.

Bank overdraft / loans

We’re aware that companies in financial trouble may have one of several overdrafts and/or outstanding loan
agreements they are currently in debt on.

Just give us your best estimate of the sum total of the figures that are currently outstanding specifically in
these two areas.

HMRC (PAYE, VAT, Corporation TAX, CIS)

Many companies find that HMRC are one of the creditors they owe the most to, between factors such as their PAYE, Corporation Tax and VAT bills at certain times of the year.

If you can, try to add up all you outstanding HMRC payments and give us a general estimate.

Other individuals/companies

Whether you owe money to one individual or 100 companies, each of them can be classed as a creditor, so the outstanding debt needs to be taken into account.

These debts can include freelance employees with unpaid invoices, stock suppliers who haven’t been paid for items, or agencies who have outstanding bills for services rendered.

Value of company assets

Now for the good news! We always look to cover the costs of a Liquidation - and any repayments to creditors - by using company assets.

Assets could include property, stock, vehicles, equipment and outstanding invoices. We can provide a full valuation of each area, but for now, just select a rough estimate.

Could cashflow problems in my business affect my personal finances and credit rating?

Debt Advice

Jason Elliott at Bolton Insolvency Experts explains why sometimes business cashflow problems can affect you personally. Sole traders and individual members of a partnership are personally responsible for business debts, but if you own a limited company then the limited liability status of your company means that any business debts are limited to the company and not the directors personally. This means that as a director your personal finances should not be affected. However, although this sounds quite straightforward there are exceptions which you should be aware of.

Personal guarantees

If you have signed personal guarantees, for example on a business loan or property lease, and the business is unable to meet the agreed payment terms, then as a guarantor you will be personally responsible. If you fail to meet the payment schedule, then the creditor, whether it’s the landlord or the bank, will pursue you personally for the debt. You should look at all your agreements to see precisely what your situation is.

Trading whilst insolvent

A company is classed as insolvent if it’s unable to pay its debts as they fall due or when its liabilities exceed its assets. If you believe that your company is insolvent and you continue to trade, adding to the company debt, then as a director, you can become personally liable for that debt. In these circumstances, if a director incurs further debt whilst knowing that the company has no chance of recovering and paying that debt back then this can be classed as wrongful trading. If a company director is found guilty of wrongful trading, even though they have been acting through the company, they can become personally liable for any losses suffered as a result and they may also have to pay damages. Likewise, if a misfeasance claim is brought against the company, where the directors have knowingly acted in an inappropriate way and another party suffers as a result, then again directors can become personally liable.

Overdrawn directors’ loan account

Having an overdrawn directors’ loan account when a company goes into liquidation also means that the directors will be personally liable for repaying that loan. The insolvency practitioner handling the liquidation can demand repayment of the loan as it is their duty to act in the interest of company creditors. They can even take legal action against directors to force them to pay, which could lead to bankruptcy if they are not able to pay. If your company is in financial distress and you are worried about the impact this could have on you personally, contact our team at Bolton Insolvency Experts now on 0300 303 8284 or via our contact us page.

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At the Insolvency Experts we think that our service offers excellent value for money. Depending on your circumstances, our services can even end up being effectively free of charge.


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