Where can I get free insolvency advice for my business?

Free insolvency advice for my business

If your business is struggling financially and you think it might be insolvent, the last thing you want is to spend more money on professional advice. The good news is there are some reputable sources of free insolvency advice out there. For example, business debt charities and some licensed Insolvency Practitioners will assess your business’s financial position and help you understand your options without charging a fee.  

You must also ensure any insolvency advice you access comes from a trustworthy source. Some online firms of ‘business debt experts’ or ‘business debt advisers’ can be unqualified and unregulated. To avoid these, you should always check that the people you’re dealing with are members of professional bodies, such as the Insolvency Practitioners Association (IPA) or the Institute of Chartered Accountants in England and Wales.

Why do I need business insolvency advice?

Your business technically becomes insolvent when it can no longer pay its debts when they’re due or when its liabilities exceed its assets. At that point, your legal duty as a company director switches from promoting the company’s success to protecting the interests of your creditors (parties you owe money to). Seeking reputable insolvency advice can reduce the risks of the financial and legal repercussions you could be exposed to if you do not act in the right way. 

Seeking professional insolvency advice at your earliest opportunity also gives your business the best chance of survival. With the right help, a struggling business can continue to trade and return to profitability. An Insolvency Practitioner can negotiate a Time to Pay arrangement with HMRC, explore alternative funding sources and enter formal business rescue procedures such as a Company Voluntary Arrangement. On the other hand, if your business is no longer financially viable, they can close it properly via a Creditors’ Voluntary Liquidation.      

How do I know if my business is insolvent?

There are several warning signs to look out for that could indicate your business is insolvent:

• Constant pressure from your creditors and threats of legal action
• Struggling to pay your tax bill
• Reaching the limit of your overdraft and being refused further borrowing 
• Failing to pay yourself a salary
• Not having the money to pay staff wages
• Not having the funds to order materials or pay for the services you need to operate your business effectively  

If you recognise any of these signs in your company, seeking free insolvency advice will help you establish your business’s financial position and make informed decisions about your next steps.   

Where can I get free business insolvency advice?

In the UK, there are several sources of trustworthy and free business insolvency advice.

Your accountant 

Most small and medium-sized businesses work with an accountant in some capacity. They may have some knowledge of insolvency or at least know someone who does. You should still do your due diligence to ensure anyone you receive advice from has insolvency qualifications and a relevant professional accreditation. Many accountants also charge, even for initial advice. 

A business debt charity 

Some excellent business debt charities provide free insolvency advice, resources and self-help tips to help get your business back on track. The three main charities are Business Debtline, Money Advice Trust and The Debt Advice Foundation. They provide a range of contact options and can help you deal with everything from creditor threats and court action to alternative funding options. 

The limitation of business debt charities is they cannot enter your company into formal insolvency procedures, but they can refer you to an Insolvency Practitioner from their panel.

An Insolvency Practitioner

Most Insolvency Practitioners, including the team at Real Business Rescue, provide a confidential consultation free of charge to assess your position and talk you through your options. 

Licensed Insolvency Practitioners are qualified and licensed to offer business insolvency advice and administer formal insolvency procedures. They are closely regulated and have in-depth knowledge of all the informal and formal procedures. You can trust their advice and guidance and complain to the Insolvency Service if you’re not happy with the service you receive.    

Need advice?

Our experienced Insolvency Practitioners advise thousands of company directors every year. We will help you understand your options in the face of financial distress and give you the information and guidance to make the right decision for your company. Get in touch for a free, same-day consultation or arrange a meeting at your nearest office.