Business Recovery - Company Debt Advice

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Business Recovery

Businesses can often arrive at a point where business recovery is required - there are a number of possible options. Until all the facts are established it is difficult to give positive advice about the right course of action. A key question is whether the fundamental business proposition is sound or the business can be saved - the recovery is likely to include some cost savings, team redirection; developing the business proposition. The choices possible are very different if recovery is possible.

To consider recovery a plan will be required showing how this can be achieved; the historical indebtedness can be resolved in a number of ways once a viable business plan is accepted.

The business can trade out of its financial difficulties with the support of its lenders, or major creditors; and or some fresh cash injections. Another alternative is to obtain a company voluntary arrangement which will allow creditors to be repaid in part or full over a longer period - say 3 to 5 years. Another alternative is a creditor's voluntary arrangement. Creditors will, if persuaded, voluntarily agree to take a payment in full or part over a number of months - probably 3 to 5 years.

There will be cases where the business would have a greater chance of success if it could avoid some onerous contracts and in this case a prepack administration could be the solution. The business would be set up without the onerous need to repay the creditors - the administration will take care of this. Company turnaround experts may well be required for a short period to ensure the business is successful; the first step is to explain in some detail the business situation, take advice on the recovery options and agree a course of action. Talking to a professional will help uncover all the options and agree the course of action.

Establishing the plan and all the financial circumstances will provide the comprehensive information required to enable a viable solution. Our advisers can help by asking the right questions, using the plethora of case studies to explain what the next steps will be; guiding the process.

The need for business recovery is common from small to extremely large companies - the cause of requiring recovery vary but the route to recovery will require a plan, some support from creditors or lenders, a cash injection. Talk to one of our advisers to establish the business solution for your company.

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This website has been written and intended for registered limited companies in the UK only. The site contains general information and resources for limited companies only in financial trouble. Insolvency Helpline only work with limited companies to offer solutions for their business debt problems. Insolvency Helpline cannot offer help or advice any other entity except limited companies. Insolvency Helpline does not advise individuals, sole traders or partnerships seeking debt advice. If you are an individual, sole trader or partnership seeking advice, we recommend using an alternative service.

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