Running a business can be a delicate balance of managing the cash, resources and time. If your business is struggling to manage cash flow, then we may be able to help you rescue the business.
Below we have summarised some of the most common types of insolvency options we can help you with:
Administration
When a company is faced with financial difficulties, it may be placed into Administration. This procedure places the company under a legal protection known as a moratorium, that stops creditors taking action against the company whilst the Administrator seeks to restructure the company and save the company as a going concern.
Company Voluntary Arrangement – CVA
A CVA enables the company to present a proposal to its creditors for an agreed period, to repay historic debts and save the company as a going concern.
Compulsory Winding Up – CWU
‘Winding up’, or a liquidation is a common company 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.
Creditors’ Voluntary Liquidation – CVL
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.
Informal Deals
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.
Refinancing
Your current lender may be adding pressure to refinance your business and may insist you reduce 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.
Should you or your clients require any free, confidential and regulated advice in relation to company insolvency please do not hesitate to contact us via your usual point of contact or via 01270 212 700 or info@mgjl.wpenginepowered.com
Please remember the sooner advice is sought the more options there are available to avoid company insolvency, early action is the key.
All information is intended solely for informational purposes and should not be used as a substitute for specific professional advice.
