What does business recovery mean
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Recovery of your Company Financially.
Directors have numerous ways when considering the recovery of your company financially. Moreover, options vary on the financial stability of the company?
- Additional funding;
- Consider restructuring company including debts & assets;
- Listening to insolvency solutions from a licensed insolvency practitioner.
How HBG Advisory may assist.
We need to analyse your company’s current position. Our advisors establish in which way we can assist you in moving forward, then we arrange for a free consultation.
HBG Advisory operates nationwide, We meet at convenient location points observing privacy and confidentiality. However, if you view our home page, you may book a virtual meeting when safety a concern.
The IP assesses your companies situation and then offers free initial advice. We explain in clear English, options available, followed by advice given in writing.
Options for Recovery
HMRC “Time to Pay Arrangements” (TTP)
A Time to pay arrangements – Informal solution, ideal for companies with an excellent payment record with HMRC.
TTP arrangements assist companies to pay outstanding corporation tax, PAYE/NI or VAT in instalments.
HMRC require convincing your company may, therefore, pay the repayments, before approving a proposal.
Administration protects companies from creditors quickly. An Insolvency Practitioner (IP) then takes control of the business and creditors can’t take any further legal action. This gives time to then sort issues out.
The administrator needs to achieve one of three outcomes:
- Rescue the company as a “going concern”;
- Obtain a result better than liquidation;
- Realising better value in company assets for “secured” or “preferential” creditors.
Read: “Company Administration“
Administrative receivership then protects creditors with a floating charge registered over debtors.
When terms of borrowing are breached, then an insolvency practitioner (IP) is appointed. They, therefore, administer the business and recover the debts owed. Usually, by the sale of assets, before then handing the company back to the control of the directors.
A further option then is by the sale of the whole business as a going concern.
Read: “Administrative Receivership”
Recovery of your Company Financially – Company Voluntary Arrangement (CVA)
A CVA agrees how the company may then repay debt. A plan including all of a company’s unsecured debt is then presented by creditors to approve. Once approved it is then legally binding.
A CVA is therefore often used by companies for recovery. Allowing debt renegotiation while trading. Interest and charges stop, creditors then cannot take any further legal action.
The CVA may, therefore, last 5 years, once completed, outstanding unsecured debt is written-off.
If Rescue, not an option?
However, the recovery of companies is not always possible.
So a liquidation then deals with the issue.
Many options exist assisting directors then turnaround their company to recovery.
Do not forget then about Directors Redundancy.
Act fast, ask for help and support now!