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.
15th February 2017 The growth of what has become known as the gig economy is costing HMRC in the region of £75 million in lost tax revenues every week, it has been claimed.
14th February 2017 Growth in the UK economy will slow down considerably over the course of this year and next, according to the European Commission.
14th February 2017 The Co-operative Bank has been put up for sale in its entirety four years after it came perilously close to collapse before being acquired by US hedge funds.
9th February 2017 Notably strong consumer spending helped to keep the UK economy on track in recent months despite the ongoing uncertainty surrounding the country’s exit from the European Union.
6th February 2017 A majority of big business leaders around the UK feel that the Brexit vote last June and the still unfolding ramifications have had a negative impact on their operations.
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.