The service is a UK based corporate recovery and turnaround consultancy offering advice to companies’ financial problems. The dedicated aim of the service is to provide companies with a caring, professional hands on approach to financial problems with the ability to identify and resolve problems at an early stage.
The advice team have extensive commercial experience in business and personal insolvency procedures and undergo regular professional training and updates, ensuring that the highest standards of practice are maintained at all times.
The service provides initial advice and then actively refers clients to its professional network of Lawyers, Accountants, Licensed Insolvency Practitioners specialising in corporate recovery, business rescue and company insolvency advice in the UK.
The company exists to promote corporate rescue and make sure that companies of all sizes only get advice from the firms regulated by UK professional bodies.
Whilst both accountants and lawyers are authorised to take insolvency appointments, in practice the approved panel firms are predominantly accountants, lawyers and company turnaround experts. The work relationship between the lawyers, accountants and company turnaround experts in insolvency has a largely symbiotic component in as they both need each other and respect each others roles.
When economic conditions deteriorate, small businesses are usually the most vulnerable. They tend to have fewer resources, less capital and typically rely on a smaller number of customers than larger businesses. However, it is not usually lack of profitability that causes their failure – its lack of cashflow.
If suppliers restrict credit or demand to be paid sooner and at the same time customers take longer to pay – or in some cases don’t pay at all – businesses find themselves paying out money faster than it is coming in.
This cashflow ‘hit’ can be compounded by a squeeze on profit margins. As overall spending in the economy reduces, there is a shrinking pot of possible income to chase – and to win this business, prices are often cut.
However, unless a business has reduced its overheads – and its breakeven point – it could fall into that other dangerous trap of chasing sales at any cost and taking on loss-making business.
These are just two of the pitfalls that businesses need to avoid in these turbulent times.