Saving your company - Insolvency Advice Centre

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Saving your company

If you feel your business may be insolvent you must immediately contact an insolvency practitioner who will investigate, determine the symptoms and advice solutions. Due to your own nearness to the business various important issues may be clouded and uncertain.

Critical areas for symptoms and solutions

  • Direction- is it a clear business plan. Are the directors, employees, customers, suppliers, investors and banks supporting your business plan. Communication of the plan must be effective with no misunderstandings which create confusion, underperformance and missed targets.
  • Reviews- are you measuring progress. Review meetings with clear actions, responsibilities clearly assigned and target dates determined will ensure keeps to the plan.
  • Listening- are employees performing their disciplines affectively. Are they working together or do you detect strained working relations which leads to poor performance and output.
  • Complexity- is the manufacture as basic as possible. Can operations be removed or improved. Is machinery efficient, can it be superseded by technological advances? Can quality be improved? Are rivals producing at a greater volume and better quality?
  • Accounts- do you understand your accounts. Are they accurate and show a true and fair picture of your business. Is your company making money and where is your money?

The insolvency practitioner will address all issues.

  • Handling creditors- explaining your situation from a professional’s view and seeking their cooperation in managing your cash flow during implementation of a rescue plan. Most creditors will cooperate if they believe they will get paid.
  • Viability- is your business is viable. An in depth review will take place covering all aspects of the business. This will identify weaknesses in the business and suggest solutions to the problems.
  • Rescue plan- this is known as a CVA (company voluntary arrangement). It binds all creditors in understanding your situation and gives you a breathing space for recovery and possibly reduces the amount you need to pay them.
  • Protection- via an administration order. This automatically stops all legal proceedings placed against your business. Legal proceedings placed are usually debt recovery, County Court Summons, bailiffs, landlords, winding up proceeds. The administration order will provide a breathing space to determine how to rescue, restore then grow the business.

The insolvency practitioner has professional experience in insolvency issues and will offer an unattached outsiders point of view. This is very important as some emotive issues will have to be addressed. Must issues will be common to insolvency cases and therefore clearly identifiable to the insolvency practitioner.

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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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