When financial difficulties hit your company, you need to take a serious look at the long term viability of your business.
This may require a restructuring of the business model, trimming unnecessary expenditure, selling equipment, reducing stock or changing the direction of the business to meet the changing market demands. Restructuring your business may just require an individual voluntary arrangement (IVA) or a company voluntary arrangement (CVA).
If your business is insolvent and a long term plan is unfeasible, you may be forced into receivership.
Although the two are often confused, receivership and administration are two different processes. You may find that your relationship with the bank has broken down and your company is insolvent. A receiver is appointed by a floating charge holder, which is usually the bank or a secured lender. When a loan is made to a company by a bank or a secured lender, a form of security is required, with fixed and floating charges attached to the agreement to give the bank security through the assets of the company.