One of the questions The Insolvency Experts are asked the most is ‘How can I reduce the risk of Liquidation? With over 3,500 UK businesses entering Liquidation in the third quarter of 2016, an increase of 2.2% on the previous quarter, it is easy to see why many business owners and financial directors are concerned.
How to avoid company Liquidation
There are several challenges that business owners face when trying to be successful and avoid financial difficulty. Cash flow is important for businesses of all sizes and even when it appears as though things are going well, cash flow problems can lead to liquidation. Business cash flow issues can be avoided by invoicing promptly and negotiating regular, stable payments from long-term clients. Knowing when money will arrive can help you to keep on top of your finances and ensure all bills are paid. Recover debts owed to you and don’t let unpaid bills linger. Building a strong relationship with creditors can reduce the risk of proceedings against you, should your business face financial problems. Keeping them informed at all times and building a good record of prompt payment can also help. Reducing overheads and cutting unnecessary expenditure are simple tasks that can help keep your business afloat during difficult periods. You should always seek professional and expert financial advice if you think your business may be facing financial issues. The Insolvency Experts provide business debt advice to organisations of all sizes, helping them to take the best course of action. Our professionals can help your business to deal with cash flow issues or the threat of Administration or Liquidation.
Contact The Insolvency Experts!
If you represent a business that is concerned about Liquidation or you’d like more information on Insolvency, please get in touch with The Insolvency Experts today. Contact us online and we’ll be happy to discuss any issues your business is facing or call our expert team directly on 0300 303 8284.