Business Recovery Services Review and Assessment
Evaluate the current state of your business and assess which Business Recovery Services option may be right for you.
Do I need A Business Rescue or Business Recovery Service?
The first question to ask yourself is: “Is my company insolvent?” If it is then you will need to take action. Company directors have a duty to ensure that a business is not trading while knowingly insolvent. An individual may be banned from being a company director if they knowingly allowed a business to trade while insolvent.
The Insolvency Test
The commercial test of whether your company is insolvent or not is simply that your company is insolvent if it cannot pay its debts as and when they fall due.
However, a company is also insolvent if the company’s balance sheet shows that its liabilities exceed its assets.
If either of these tests apply to your business, then you need to take advice about the most appropriate course of action.
In a recent survey of financial controllers/directors, nearly 65% said they would not seek outside help if the company had a cash flow problem, as “something would come along and fix it”. Is that really sensible management?
Evaluate the right Business Recovery Service for You
If you believe that your business may be insolvent, then you should take advice straight away. However, how do you know which type of rescue or recovery service is the most appropriate for your business or even if you should be considering any of these solutions at all?
Top Ten Insolvency Warning Signs