Options for Company Directors in Difficulty
My business struggles to pay off its debts.
What help is available?
Where can I get help?
Since the outbreak of the coronavirus pandemic, British businesses have struggled.
It is essential to consider that when trading returns to normal, business owners may find their business does not benefit immediately. Indeed, debts may continue to increase as cash flow takes time to turn around.
Here you can get assistance and robust support. At HBG Advisory, our experienced team will support you to resume the helm of your business and ensure your business remains viable.
Please carefully consider each option, and if in doubt, ask a member of our team at HBG Advisory. Qualified experts write our guides in turnaround and insolvency, including licensed practitioners. We are members of the Turnaround Management Association, Insolvency Practitioners and the Association of Certified Chartered Accountants.
Assume control today and call a team member at HBG Advisory on the number found in the top right-hand corner of this web page.
Avoid insolvency by agreeing an informal deal with creditors
If my company can’t pay off its debts, can it avoid insolvency? And as a company director, what can I do?
What is a company voluntary arrangement CVA? The process of a CVA explained? Cab proposing a CVA reduce operational costs?
What is a Company Administration?
- What does it suggest appointing an administrator and its process?
- Who appoints an administrator?
- What is a pre-pack administration?
- Performing an administration followed by Company Voluntary Arrangement CVA?
Trading Out of the financial position
A common-sense way to trade out of cash flow problems. Perhaps the first option for a business to consider when it experiences financial issues, such as:
- HMRC Tax and VAT arrears;
- Significant cashflow difficulties;
- Creditor Pressure.
HMRC Time to Pay VAT & PAYE
Arranging a time to pay with HMRC.
The Business Payments Support Service helps businesses gain time to pay agreements with HMRC.
Call 0800 612 5448 and ask for John Waller.
Would you please ensure you prepare an accurate forecast, cash and realistic proposals to repay the tax over an achievable period?
The team at HBG Advisory can assist you with the forecasts.
Operating a limited company established over 20 years, currently experiencing trading difficulties and having issues with the established company bank, you should digest what’s written below and contact HBG Advisory.
Directors in this situation should take all steps to secure the position of their creditors. We suggest you carry out the fundamental ways to improve your company’s position. Firstly:
Reduce operating cost;
Identify the main issues formulating a reversal plan;
Arrange a meeting of all directors, ensuring they remain advised of the company’s position;
If all fails, consider the option best suited to your limited company, as detailed below.
To clarify a misinterpreted term. The Receivership of a limited company, often confused with administration, is the Insolvency term used to secure finance lenders, such as banks, when they had security taken pre. The Enterprise Act of 2002. Monies after that date do not fall under receiverships, as administration now replaces.
Voluntary liquidation can provide a quick way to close your limited company, removing creditor stress and any other business worries. HBG Advisory can carry out a voluntary liquidation without the risk of personal liability. Check out this process with a member of our team.
Suppose a limited company ends up in compulsory liquidation. In that case, this is usually the result of an aggrieved unpaid creditor choosing the last resort to either leverage payment or shut the company down, allowing the courts to appoint the official receiver.
A compulsory liquidation by a creditor is action through issuing first a winding-up petition.
So how does a limited company undergo compulsory liquidation, and what happens in the liquidation process?
Company Voluntary Dissolution
If your limited company has only a few minor debts, then considering a dissolution may be the best option.
Refinance Your Company
Our guide to refinancing the company.
Trade Sales Guide
When your business is in financial distress, many owners seek to sell their business. It is usually best practice to have a professional review of your business beforehand to ensure:
Is your business solvent?
If not, consult an Insolvency Practitioner.
If the business is viable, the review will bolster the selling process, providing prospective purchasers with assurances and:
- Provides the reason for its sale;
- It’s valued;
Again, contact a member of our team for help.