Close My Construction Company

Rescue your building and construction company

If you would like to look at ways to save your construction company, a licensed insolvency practitioner will be able to talk you through your options. Just because your business may be experiencing a number of financial and operational challenges, this does not automatically mean that it cannot be turned around.

An insolvency practitioner will first have to understand whether your construction company is viable, and if so, they will take the time to appreciate the challenges which have led up to your current position and look at ways of mitigating this. If your problems stem from irregular and unpredictable cash flow making it difficult for you to keep up with your payments to staff, creditors, and HMRC, plans can be put in place to ease this burden.

Many in the construction industry face problems with late payments of invoices, which can be an annoyance at best, and financially ruinous at worst. A form of invoice financing could be the ideal solution for you, as long as the business is otherwise operating successful. Invoice finance allows you to access an agreed portion of your unpaid invoices immediately; this can be done for invoices which are already outstanding as well as those you issue going forwards.

Although the invoice factoring company will retain a portion of the funds as payment for their services, the reassurance and predictability this type of arrangement can give to your company could be well worth it. Knowing exactly what you will get paid and when, allows for better forward planning, particularly when it comes to purchasing stock and ensuring you have adequate cash reserves to cover the business’s outgoings. 

If your construction company has suffered financially due to rising costs, and you have fallen into arrears with your creditors, entering into formal negotiations with them could allow you to restructure your existing debt to a more manageable level.  

This can be achieved through a legally-binding insolvency solution known as a Company Voluntary Arrangement (CVA). This type of arrangement will usually run for anywhere between 3-5 years and give a viable business the opportunity to renegotiate payment terms and existing lease agreements to give the company the best chance possible of survival. This type of arrangement can benefit both company and creditors alike. Companies can significantly lower their monthly payments, while creditors get reassurance that they will be able to recover a significant amount of the money owed even if this will happen over a longer period of time.

We can also consider the merits of placing your construction company into administration if it is deemed that more time is needed to formulate a robust plan going forward. This may entail the company going through a process of business simplification, particularly if it has a complex operation structure which needs to be streamlined in order to improve overall efficiency.