In December, I warned that company insolvencies would soar over the next 12 months.
Now, new research suggests that one million businesses are currently facing ‘financial distress’, with 850,000 UK firms currently suffering from decreased profits.
Insolvency & Law provide services for companies in trouble, and businesses affected by companies in trouble i.e. creditors.
Interestingly, so far this year, most of the calls we’ve received have been from creditors, rather than distressed business owners.
This suggests creditors are having great difficulties in getting their customers to pay up, and also reveals that companies in distress are not seeking help.
Distressed company owners are fighting tooth and nail to keep their businesses afloat, but only tend to seek advice when everything they’ve tried has failed. The problem is, by then it’s usually too late to rescue the company.
Distressed owners should contact us as soon as they’re unable to meet their financial obligations.
We act as an intermediary between companies and their creditors. For example, if a business has good prospects, but short-term cash problems, we can put proposals forward to creditors.
Typically, clients have 30 days to settle invoices. We tell creditors they can expect 100% recovery if they lengthen the time-period to 180 days.
If creditors don’t accept the proposal then they leave us little option but to take our client through a Company Voluntary Agreement (CVA).
In a CVA, creditors who refused the offer of 100% repayment over 180 days will then have little choice than to accept 40% repayment over five years.
Another alternative is complete liquidation of the business whereby creditors are offered 0.
You may get a creditor who takes unilateral action, and decides to spend a couple of thousand pounds on a winding up petition.
But we can use our expert knowledge to remind that creditor of the benefits they’d receive if they should choose to withdraw the petition.
Insolvency and Law specialise in the successful rescue of businesses and urge all struggling company owners to contact us now for free, confidential advice before it’s too late.
Beech Holdings (Manchester) Ltd (now called Manchester Property Developments Holdings Ltd) is a company self-described as a prominent residential developer and operator with a rich…Read More
Purchasing off-plan property can be an enticing prospect, offering a chance to secure a futureproperty at potentially lower prices and reap wonderful returns. However, the…Read More
Sometimes, when investments take a wrong turn, it can leave you feeling isolated,powerless, and hopeless. You might question your ability to fight back as an…Read More