It is a well known fact that many business failures could have been avoided if the owners had taken the right advice at the right time. Some of the most common causes of company collapse are bad debts, reduced demand, excessive borrowing, and low property values. All too often business owners do not face up to these problems until it is too late.
Moreover, directors who ignore such problems run the risk of committing offences under the Insolvency Act such as fraudulent trading, misfeasance, wrongful trading, and preferential or undervalue transactions – for which the penalty might be disqualification, or worse!
The key is to seek professional help as soon as the first signs of difficulty appear. With timely advice a company may be saved from liquidation or receivership, particularly if there is a genuinely profitable core to the business.
Our team of trained professionals can help you identify the cause of your problems and recommend solutions to improve profitability and cashflow. In some cases we can help you arrange a corporate or individual voluntary arrangement, which will allow you an opportunity to try to trade out of difficulty.
If it is necessary for your business to go into administration, receivership, or insolvency, we can advise and assist you, but the best advice is to come in for regular business health checks so we can identify potential difficulties at an early stage and recommend appropriate courses of action in good time.