Company Debt

COMPANY DEBT ANALYSER

If a company is falling into financial difficulty there are a number of business debt rescue services solutions that can be looked at with the aim of succeeding in effecting a business turnaround or company rescue.

Clearly the first solution that business people consider is to secure additional funding either from investors or their bankers. Unfortunately in the current climate, it is becoming more and more difficult to borrow funds from these sources. This situation will be made even worse if a company is already financially struggling.

Business Turnaround

If your company is struggling, it is sensible to consider alternative ways of resolving business financial problems and to look at other Business Recovery (or Business Debt Rescue) solutions.

This does not have to mean looking at winding the company up (either with Compulsory Liquidation or Voluntary Liquidation).

A Company Voluntary Arrangement can be used to restructure a business debts allowing it to trade normally but without the day to day burden of historic creditors.
An Administration Order can be used to restructure a company so that it is better placed to develop and grow into the future.
Phoenixing or Pre-pack Administration may be appropriate where historical debts are causing financial trouble but the core business is profitable based on its month by month trading.
Business Refinancing. There are a number of alternatives to traditional bank loans and overdrafts that may be suitable for you.

As always, the key to resolving corporate financial problems is to act and act quickly. If you feel that your business is suffering financial difficulty, the best thing to do is take advice and develop a plan of action as quickly as possible before things get worse.

The advice team can evaluate the current state of your business and assess which Business Debt Rescue option may be right for you.

While our Head Office is in London, we provide services to businesses across the whole of England and Wales including Cardiff, Bristol, Exeter and the West Country,  the South East, Birmingham and the Midlands, Liverpool, Manchester and Yorkshire.

With a panel of Insolvency Practitioners cross the UK, we are able to match your needs, working with an Insolvency Practitioner who is local to your area or has a specific knowledge of your business function.

My company cannot afford to pay a CCJ, what can I do?

If your company has debts which it is unable to pay, it is likely that it will receive a CCJ. We look at the likely consequences of a CCJ and what options you have.

My company is struggling with debt – what are my options?
As small to medium sized businesses continue to face financial difficulty, business owners should be aware of the different strategies available to resolve company debt problems.

My company debt cannot be paid – options to solve the problem

If your company has debt which it cannot afford to pay, you could risk the business being wound up and the directors being held liable. We give advice on the business debt solutions available.

If my company is wound up could the bank force me to sell my home?

If your company is struggling and likely to be wound up, your home could be at risk if you have given personal guarantees of repayment to the bank.

Company Liquidation – What will it cost to close my company?

If a company needs to be closed because it is unable to pay its creditors and is at risk of being wound up, a process called voluntary liquidation should be implemented. This is preferable to letting it be wound up by a creditor and risk being liable for company debts.

Compulsory Liquidation – When the courts take over following legal action by someone the company owes money to

Compulsory Liquidation is where a winding up order is made by the court. A company will be ‘wound up’ by the courts following a petition issued by one of the following: The company, the directors, a creditor, a shareholder, an Administrator or administrative Receiver.

Voluntary Liquidation is the process by which the directors of a company close the company down

This process can be done with the assistance of a licensed insolvency practitioner, choose to put the company into liquidation, (also known as winding up).

What is Members Voluntary Liquidation?

A Members Voluntary Liquidation can take place when the directors of a company believe that the company is solvent but they no longer wish for the company to trade. This may be because the owner director is to retire and prefers to liquidate the company and its assets rather than sell.

Business debt advice could save your company

If you are running a business, you won’t need telling how tough times are at the moment. You’ve seen companies struggle when been beset with company debt problems, and obviously want to avoid the same fate. If you are facing hard times at the moment – perhaps due to company debt problems – you may want to consider advice on company recovery.

Though it may be natural to try and bury your head in the sand when facing business financial problems, this will only make things worse. If you think you need business debt advice or company rescue, don’t hesitate to talk to the experts.

Company debt problems: Do you recognise these warning signs?

  • Your Company Current Account is permanently at the limit of the overdraft.
  • Your accounts and annual returns are posted late.
  • VAT and PAYE/NIC payments are regularly made late.
  • Your business is unable to get new credit or extend existing lines of credit.
  • You are receiving regular late payment demands from your suppliers.
  • Your company has received a Court Summons or Judgment.
  • Cheques are being returned from your bank unpaid.
  • The Bank refuses to increase your overdraft or provide a loan.
  • The bank wants to increase personal guarantees or demands security against your property.
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