Business recovery from the early signs of insolvency
If you’ve started to investigate insolvency, it’s most likely that you’ve seen warning signs in your business, like cash flow problems or pressure from your creditors. Rest assured that in many cases, we can solve these issues quickly using simple business recovery tools and using no legal processes.
The important thing is that you determine the reality of the situation and then act quickly. We show you how to do this below. If you’d prefer to speak to one of our licensed insolvency practitioners about our business recovery solutions, Call us on 0800 054 6590 or request a call back
Do you need business recovery?
There are two clear tests that you can use now to determine if you should seek further help and advice from us.
The cash flow insolvency test
Cash flow problems are often an early warning sign of insolvency. You might find yourself unable to pay creditors, including HMRC and suppliers, in full and when their invoices are due.
To carry out the cash flow test, first create a list of your short-term incomings. Then list your current outgoings and the dates they are due. If the incomings cannot be made to meet your outgoings at the right time, your business is technically insolvent.
When caught early, this is a situation where business recovery can help.
A cash flow forecast is an essential tool to plan ahead for your business. If you don’t have one and need help creating one, our downloadable guide talks you through how to create and use one. You can download it here.
The balance sheet insolvency test
The balance sheet test looks at your business from a wider angle, taking into account the value of all your company assets such as stock, money in the bank and property or machinery that you own. When put against your liabilities, including employees’ salaries and payments to HMRC, if you have more debts than you can cover with your assets then you’re in an insolvent position.
It’s time to take action.
Call us on 0800 054 6590 or request a call back
How we can help
Informal business recovery solutions
It might come as a surprise but a big part of our role as licensed insolvency practitioners is to help businesses through business recovery, before insolvency takes a firm grip. We can show you where and how to make adjustments that could positively affect your present and future incomings – and bring you back into profit.
Our business recovery solutions are tailored to your businesses needs. We can guide you through creating an accurate cash flow forecast, help your directors more proactively manage the company…even work with you to develop strategies to attract more customers.
Formal business recovery solutions
If your company is experiencing difficulties now but has the potential to be successful in the future, with some help and guidance, we can use a formal business recovery process like a Company Voluntary Arrangement (CVA). Part of a CVA is a negotiation with your creditors on repayment of debts. This needs to be supported by a realistic business plan that shows them you can afford these payments.
In other cases, it might be more appropriate to use a company administration or Creditors’ Voluntary Liquidation to close your company and save the parts of your business that are working under a new company. This might sound extreme but formal business recovery processes like these are an effective way of shedding any company debts and keeping your core business alive.
Other ways we can help