Business Restart Options Available

Business restart options available. Written by John A Waller, Consultant. Reviewed on: June 7th, 2024.

UK business restart options available  for companies affected by the coronavirus COVID-19. HBG Advisory licensed insolvency practitioners  provide bounce back loan support to UK directors.

However, many directors consider liquidation the only option.

Insolvency experts advise and support company directors.

Why choose a limited company restart?

If your business is unable to pay its bills in the worst-case scenario, you’ll have some stark options.

Many directors find themselves in this situation. Only half of startups make it past their third year, so closure is common.

Your choices are limited if your livelihood is at risk.

Closing your company and starting again is one option, but the law must be carefully considered, as strict legal boundaries define what you can and can’t do.

Many small businesses face financial issues, which may require restarting your limited company. This process involves transferring the ongoing business to a new company free of debt, which is often the most suitable way forward.

By closing down your struggling company, you’re not just ending a chapter, but opening a new one. In fact, in some cases, you may even leverage assets from your old company to start the new one at a more affordable cost, presenting a promising opportunity for a fresh start.

Restarting a company can help overcome startup failures, but it’s crucial to understand that this process must be handled in a particular way, taking into account the legal boundaries that govern all businesses. These boundaries define what you can and can’t do when restarting a company.

By continuing to trade with a new incorporated company, you can:

  • Hold onto your team to ensure your new company has the skills necessary.
  • Get rid of any bad debts.
  • Get rid of the obligations of bad contracts.
  • Retain loyal customers.
  • Maintain brand awareness, therefore reducing startup costs.

We understand that navigating the process of restarting a company can be challenging. That’s why we’re here to help you achieve these objectives with careful management targeted at the best outcome for you.

How can I restart my business with a Bounce Back Loan?

So companies may, therefore:-

However, many companies have no income since lockdown

Check if you’re eligible for a coronavirus Restart Grant

My business has had no income since lockdown.

The Restart Grant Scheme supports UK companies affected by the COVID-19 coronavirus pandemic in non-essential retail, hospitality, leisure, personal care and accommodation sectors. It provided a one-off grant to reopen safely, as COVID-19 restrictions were lifted.

However, the Restart Grant closed to new applications on 30 June 2021.

Business Restart Options Available – Creditors Voluntary Liquidation (CVL)

So, when considering a creditors voluntary liquidation note:-

  • Suited to wind-up insolvent limited companies;
  • A Liquidator is appointed;
  • Company assets sold and proceed distributed among creditors;
  • The directors can act as directors again;
  • possible to carry out a pre-pack liquidation;
  • Prices from £2,500 plus VAT and disbursements to convene regulatory meetings and help prepare the report.

So read more: What is a Creditor’s Voluntary Liquidation

Business Restart Options Available – Members Voluntary Liquidation (MVL)

  • Process winds up a solvent limited company;
  • Generally applied to close a no longer trading limited company;
  • Companies assets sold and proceed paid to company shareholders;
  • Tax clearance finalised;
  • Shareholders receive distributions fast;
  • Prices from £950 plus VAT and disbursements

Read More: Members Voluntary Liquidation MVL-IR35 company Closure

Business Restart Options Available – Company Voluntary Arrangement CVA

  • An arrangement between an insolvent limited company and its creditors, therefore allowing trading to continue;
  • Monthly repayments to be reduced to company creditors;
  • The company remains protected from creditors attempting legal action;
  • The directors remain in control of the company;
  • An Insolvency Practitioner is selected to put the CVA in place and therefore communicate with the company’s creditors;
  • Prices from £2,750 plus VAT and disbursements to prepare and propose the arrangement;
  • Considered a Company Rescue.

Read More;Company Voluntary Arrangement CVA Explained

Business Restart Options Available – Pre-Pack Administration

  • An assured legal process to restructure a failing limited company;
  • A liquidator is then appointed to therefore wind up the insolvent company;
  • The previous directors then set up a new limited company that could buy the business and its assets of the original insolvent company;
  • The business continues trading through the process;
  • A pre-pack administration is simply the cost of buying back the assets at agreed market value.

HBG Advisory does not require personal or company details to assist with initial questions on your company’s situation:

For Business Restart Options Available – Please contact HBG Advisory on:

  • 0330 056 3120 8 am to 8 pm, seven days a week;
  • Book a virtual meeting safe and private from your home or workplace;
  • Use web chat found at the bottom right-hand corner of the web page.

We have highly experienced Insolvency Practitioners, offering Businesses Insolvency Advice and Support to company directors.

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