Stage Reached - do I have a problem?
As a business owner, director or partner there will be times when you question the ability of your business to survive the economic stresses and daily financial issues that arise. If any of the pointers below ring a bell with you, you would benefit from taking immediate advice from a licensed insolvency practitioner.
Slightly concerned - I need some advice.
The Bank has informed me that my business has been assigned a special manager and they want me to reduce my level of borrowing.
One of my major customers has just gone in to administration / liquidation / bankruptcy leaving me with a large bad debt.
Action needed: Take advice and put yourself in control.
Very concerned - Can anything be done?
Trading has slumped to a level that will not sustain the business.
I can't pay my staff.
We have missed two tax installments.
Our suppliers have put us on to cash terms.
Action needed: You still have the ability to save your business and we can advise which procedure might assist you. It could be a voluntary arrangement or it might be decision to go to liquidation and start a new company. For some businesses it will be administration that enables a restructuring and continuation of trade.
Extremely concerned - Should we wind it up?
We cannot see any way that the business can be recovered, it has gone too far.
We have judgments (CCJ's) and now a winding up petition has been issued by one of our creditors.
Action needed: It may seem hopeless and that may be the position, but it is not definite. Taking advice may give you a way through a seemingly hopeless situation. Alternatively you can see how to responsibly wind up the business if there is no other way forward.
Seeing a practitioner does not involve making a decision about the stability of your business beforehand; it does mean gaining the knowledge to assist you in assessing your situation so that you can take action and not only protect your business, but also protect yourself.
Failing to take action when a business is insolvent can mean that the protection of limited liability is lost.
Knowing when to stop is absolutely critical!