Running a business can be a delicate balance of managing money coming into the business, versus money leaving the business.
If your business is struggling to manage cash flow, then we may be able to help you rescue the business, if the issue is identified in time.
If you are unsure of the options available to you, or how we could help you save your business, contact our business recovery experts here at MGJL.
Business Insolvency Options – which one is right for your business?
Whilst insolvency is rarely good news, there are many ways we can help you here at MGJL, with both formal and informal business insolvency options.
The right business insolvency option for you will depend on a variety of factors, including:
- The status of your business
- Cash flow
- Available business assets
Below we have summarised some of the most common types of business insolvency options we can help you with here at MGJL. Please contact us for more information.
When a company is faced with financial difficulties, it may be placed into Administration. This procedure places the company under a legal protection, that stops creditors taking action against the company, known as a moratorium, whilst the Administrator seeks to restructure the company and save the company as a going concern.
A CVA enables the company to present a proposal to its creditors for an agreed period of time, to repay historic debts and save the company as a going concern.
‘Winding up’, or Liquidation is a common corporate insolvency procedure. Normally a creditor issues a petition at Court to wind up the affairs of the company, as it cannot pay its debts as they fall due.
A CVL procedure is where directors voluntarily choose to cease trading and appoint a liquidator, to deal with the winding up of the company’s affairs. This would include dealing with creditors, selling assets and distributing proceeds to the creditors.
This is the simplest and cheapest form of dealing with debts – whether they are personal or business. Here you can contact your creditors and ask them if they will accept a payment plan, or accept a reduced payment in full and final settlement of an outstanding debt.
Your current lender may be adding pressure to refinance your business and may insist you pay down your overdraft or loan. With the right help, you may be able to find finance for your business with a variety of different funding providers.
All information is intended solely for informational purposes and should not be used as a substitute for specific professional advice.