Is your business heading towards a point where wages and / or other bills are not going to be paid on time, or where you can’t afford to buy more stock or supplies?
Do you think the business might be going bankrupt?
(Technically, it is individuals who go ‘bankrupt’ rather than businesses. The equivalent for a business when it can’t pay its debts is to go into ‘liquidation’.)
If you feel your company might potentially be going bankrupt / into liquidation, what can you do?
Seek Professional Help
Your first step should be to seek the help of a Licensed Insolvency Practitioner or your Accountant, at the earliest opportunity. The sooner the better.
(Most of the company directors we’ve seen tell us that they wished they had come to see us sooner and got the whole matter dealt with months earlier.)
Most good Insolvency Practitioners will offer you free initial advice. (We do – just call us on 0161 907 4044.)
We will listen to your situation and review your company’s finances. We will work with you (and your Accountant, where appropriate) to determine what options are available to you.
If restructuring your company and continuing to trade is the best option, a Company Voluntary Arrangement (CVA) or Pre-Pack Administration could be the solution. Alternatively, a Creditors’ Voluntary Liquidation (CVL) might be the best option
We will advise you as to which option is likely to be the best one for you, your company and your creditors (i.e. the people you owe money to and to whom you have legal responsibilities).