Over the past couple months our debts and liabilities have been steadily increasing and we’ve been unable to keep up with repayments. Our clients have been slow at paying us and we just don’t have enough incoming funds to work with. At this point we are so far behind it is hard to imagine a successful outcome from this position and our current cash flow problems. Perhaps if we reduce our debts we might be able to recover from this. We don’t necessarily want to dissolve the company and give up, but we need some kind of solution as soon as possible otherwise we’re afraid we’ll have no choice. What options do we have to save our failing business?
Unfortunately, we hear this very same question every day of the week because the economy has been in a slump for several years now. The most common reason why so many companies are failing is because they are not getting paid as quickly as they should. Perhaps a loan against your book debts, such as invoice factoring or discounting would increase cash flow quickly. Also, many companies have noticed a decrease in the amount of products or services being ordered which is compounding their problems. Together with slow paying customers, a lack of sales can be the downfall of any business.
What we would suggest is that you consider talking to a professional insolvency practitioner because there may be several factors at work simultaneously. Sometimes a Company Voluntary Arrangement would be the best option to set up a reasonable repayment plan with your creditors, including HMRC. Other times you may simply need funding or financing to keep your creditors paid whilst a turnaround is set into motion.
If your current product or service line is outmoded or not in demand, it may be time to consider entering a formel insolvency process. Perhaps your directors are not up to the task which would necessitate some change at the upper levels. It sounds as though you would like to continue trading but we suggest that if you are insolvent you cease trading immediately because you do not want to be accused of wrongful trading!
Talk to one of our insolvency specialists without delay so that we can put you on the road to recovery. We provide an initial consultation at no cost to you so act before your creditors seek to wind you up.
25th April 2016 Thousands of employees of the historic UK retail business British Home Stores (BHS) have been informed that the company is set to enter administration.
22nd April 2016 HM Revenue & Customs (HMRC) is being urged to make changes to guidance relating to its flat rate VAT schemes for small and medium-sized enterprises (SMEs).
21st April 2016 Having to pay staff no less than the new National Living Wage will leave many thousands of British businesses facing the prospect of financial peril.
14th April 2016 HM Revenue & Customs (HMRC) is increasingly focussing its enquiries in relation to corporation tax issues in the UK on the affairs of small and medium-sized enterprises (SMEs).
14th April 2016 A construction sector contracting company from Warrington has been entered into administration after being taken off a number of important contracts in recent weeks.
Every day we help companies just like yours turn things around against seemingly impossible odds, regardless of your situation we can help. Find your nearest office today.