Insolvency can be a very stressful experience and we’re here to help business owners make the process run as smoothly as possible. If your business has become insolvent and you’re unable to pay your debts, there could be ways to reduce your outgoings and improve your cash flow.
When a business can’t pay its debts and bills on time, there may be the option to reach an informal agreement with its creditors. For instance, some creditors may agree to a “holiday period” that enables you to improve cash flow, whereas others might offer a longer payment plan in smaller instalments. Whilst this won’t always be the case, it’s definitely worth looking into and could eventually solve the problem.
A company voluntary agreement, or CVA, is a legally binding agreement between a financially troubled company and its creditors. This formally allows corporate debts to be paid in part of in full over an agreed period of time. A CVA can only be implemented by an insolvency practitioner and shouldn’t be entered lightly, which is why expert advice beforehand is crucial.
In the event that the above options simply won’t suffice, it may be time to close the business and liquidate its assets. Your company will remain live on Companies House but its status will switch to Liquidation instead of Active. This “winding up” can take a long time and involves a lot of administration and legal documentation.
As qualified accountants, tax consultants and business advisors, we can help all kinds of business owners who are facing insolvency, bankruptcy and liquidation. We’re here to provide expert advice, no-nonsense guidance and a sympathetic ear, helping to make a difficult situation as hassle-free as possible. Many of the actions required can be managed or overseen by our team, plus we’ll support you in hiring third parties where suitable.
As an example of how we can help you navigate insolvency, here are a few of our relevant services:
If you require expert advice and guidance in relation to insolvency or company liquidation, call our Northern office on 01482 235575, our London office on 0207 885 0605 or fill in our contact form.
