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.
23rd May 2016 Some new entrants into the UK’s market for small and medium-sized enterprise (SME) loans and credit facilities are “as bad as payday lenders” in the consumer credit sector.
17th May 2016 Small and medium-sized enterprises (SMEs) around the UK are being particularly impacted by HMRC’s clampdown on errors relating to payroll taxation.
10th May 2016 A group made up of several hundred of the world’s leading economists have called for steps to be taken by relevant authorities and law-makers to effectively end the use of tax havens around the world.
6th May 2016 The number of Scotland-registered companies entering insolvency during 2015-16 increased as compared with the prior 12 months but personal insolvency rates continued their downward trajectory.
3rd May 2016 SMEs throughout the UK are collectively missing out on millions of pounds in savings because they are not aware of tax reliefs and government allowances that could be available to them.
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.