If your business is experiencing financial problems, you may be wondering who you can get help from
There are a lot of so-called Insolvency advisers who are offering very cheap Liquidation services to company directors and owners. Be very wary of such firms – especially if they are not regulated by a recognised professional body (such as The Institute of Chartered Accountants in England and Wales).
What most of these unregulated firms are likely to be offering is a service whereby they merely prepare a Petition for Winding Up your company – i.e. for letting your company go into Compulsory Liquidation through the courts.
The effects this will have on your future
It is important that you understand what the effects will be on you:
- The Inland Revenue, amongst others, use this procedure to force non-compliant companies into liquidation. So, it will be perceived that you were forced into liquidation.
- It is very likely that your future credit terms from lenders will be adversely affected
- Professionals (e.g. banks & other lenders, accountants and solicitors) take a dim view of directors / business owners who take this course of action
- At best, you will be viewed as someone who has been complacent and reckless with regards to your fiduciary duties
- At worst, they will think you are a rogue.
The better option for you
If you care about your future business reputation in any way, you are far better to liquidate your business voluntarily with a Creditors Voluntary Liquidation (CVL). To do so you will need an Insolvency Practitioner – like us.
How Clarke Bell can help you
- You will get free advice
- If you have signed a Personal Guarantee, we can help you deal with it
- If you follow our advice throughout the process, you will not get disqualified and you will not have done anything ‘dodgy’. This means that you will not have to be looking over your shoulder waiting for anything or anyone to come back to haunt you
- If you have already done something which you think you shouldn’t have done (e.g. made a preference payment), we can advise you on how best to remedy the situation
- We can obtain finance to enable you to re-start your business
- We can help you make the necessary cuts to your overheads (e.g. making staff redundancies)
- We are Licensed Insolvency Practitioners, regulated by The Institute of Chartered Accountants in England and Wales (ICAEW). If we don’t act appropriately, our licence can be removed
- We have been in business since 1994, so we have a wealth of experience and expertise
- We will ensure the needs of both the directors and the relevant creditors are met.
Some additional things it’s worth you knowing
- If you deal with an advisor who is not an Insolvency Practitioner and you do use an Insolvency process, you will still have to use an Insolvency Practitioner. So, you are likely to end up having to pay the first advisor and the Insolvency Practitioner. So, why not just come straight to us?
- Whatever anyone might tell you, no one is allowed to “get one over” on their creditors. In a liquidation process, as a company owner/director, you have a legal duty to your creditors – which you ignore at your peril.
- We have seen a lot of people who did not speak to an Insolvency Practitioner and were given bad advice. The results have included disqualification, losing their business altogether and personal bankruptcy.