Sometimes
business grow and boom and other times business have to face that ultimate
dreaded day when the profits just aren’t high enough and the debts keeping
piling up. A company becomes insolvent when it can not pay its debts, bills are
overdue and the balance sheet shows more liabilities than assets.
If you are in this
position then your business may be at risk of liquidation. One or more of your
creditors may take legal action in order to recover their due payments or the
bank could be pressuring you to pay back your overdrafts.
When your business has
reached this point it is best to turn to professional advice. Our team has
experts on business recovery and insolvency who will give you solid advice on
what to do next and how to make the best of a bad situation. Liquidation is always
the last resort of the company, before that we will help you explore other
options to recover from this state.
What can be done?
·
We will conduct a thorough analysis of your business
liabilities to see what can be cut down and how costs can be reduced. By
reducing overheads and operating costs your business will be saved from
haemorrhaging monies that can be otherwise saved.
·
The business finances need to be restructured. Our team
will run you through all your best options to optimize the business finances
and plan for the future.
·
Raising fresh capital would allow the business to recover
by paying off its debts and fending off creditors. We will help you explore any
available avenues of fresh capital generation that your business may have.
·
The highest source of pressure that your business will be
under with be from creditors. Our team will help you attempt to devise an
informal agreement with the creditors to repay your debts without having any
legal actions taken. This will save your company from immediate liquidation and
grant you some time to get things in order.
·
We can also attempt to seek a formal agreement in the form
of a Company Voluntary Arrangement (CVA) on the debt repayment. This would bind
the company to legally pay off its debts, or part of the debt, to its creditors
on the agreed upon period of time during with the company can continue
operations and generate revenue to pay back its loans.
·
Another option we will help you explore is selling off a
part of the business to generate revenue that can be used to recover from the
insolvent state.
Our
business recovery and insolvency services will help you explore every available
option for your business before it absolutely must be liquidated.