When a business gets into financial difficulty, it can be a very stressful time for all involved. If you’re struggling to keep up with payments, or are facing legal action from creditors, then insolvency may be the best option for you.
If you’re based in the Nottingham area, and your business is nearing the point of company insolvency, it’s essential you take immediate steps to recover your position and save your business.
There are many reasons why a business may find itself in financial difficulty, and it can be a daunting prospect trying to find a way out. But don’t despair – help is at hand.
(CFS)Corporate Financial Solutions can provide the expert advice and support you need to get your business back on track.
How to save a business from Insolvency
It’s important to act quickly if you think your business is insolvent. The sooner you seek professional help, the greater the chance of saving your business.
1. Concentrate Your Efforts on the Business’s Best Customers
Your best customers are the ones that generate the most revenue and profit for your business. Identify them and make sure you do everything possible to keep them happy. This may include offering them discounts, improved payment terms, or customising products or services.
2. Review Your Operating Expenses
A crucial part of saving your business from insolvency is to reduce your operating expenses. This may involve cutting back on non-essential expenditure, negotiating better deals with suppliers, or even downsizing your premises. Work out the most costly areas of your business and see where you can make savings. Cutting costs doesn’t have to mean compromising on quality – it just means being more efficient and innovative in the way you operate.
3. Seek Professional Help
It’s essential to seek professional help when you think your business is insolvent. An experienced insolvency practitioner will be able to advise you on the best course of action and help you to put a rescue plan in place. They will also be able to deal with your creditors, negotiate payment terms, and help you to restructure your business if necessary. To know more about what is an insolvency practitioner and how it can help you, do not hesitate to contact one.
4. Call in Outstanding Debts
It’s commonly the case that companies allow outstanding debts to go unpaid for significant periods of time, often because they’re struggling to stay afloat. This can damage your business’s cash flow and make it harder to meet your obligations in the future. If you have any outstanding debts, it’s essential to call them in as soon as possible.
If your business is owed money by other businesses or individuals, it’s important to try and collect these debts as quickly as possible. This will help to improve your cash flow and give you some much-needed breathing space.
5. Offer Discounted Prices in Return for Immediate Payment
If you’re struggling to get paid on time, offer your customers a discount in return for immediate payment. This will help to improve your cash flow and give you the working capital you need to keep your business afloat. Offering a 10 or 20 per cent discount for early payment is often enough to incentivise customers to pay on time. Be careful not to offer too large a discount, as this will eat into your profits.
What happens if my company needs liquidating?
If your company is insolvent, this means that it is unable to pay its debts. This can happen for a number of reasons, such as poor management, loss of key customers, or simply because the market has changed.
If your company is insolvent, you will need to take action to protect yourself and your employees. One option is to voluntarily liquidate your company. This means that you will sell off all of your assets and use the money to pay off your debts. This can be a difficult decision, but it may be the best option for you and your employees. If you do decide to liquidate your company, you should speak to an insolvency practitioner who can help you through the process.
Another option is to try and negotiate with your creditors. This can be a difficult process, but it may be possible to reach an agreement that is acceptable to both parties. If you are unable to reach an agreement with your creditors, they may force you into compulsory liquidation. This means that they will appoint a liquidator to sell off your assets and pay off your debts.
Can I sell my business to get profits?
Yes, you can. It’s a common tactic to take when a company is insolvent. You may be able to sell your business as a going concern, which means that the buyer will take on all of your assets and liabilities. This can be a good option if you are unable to pay off your debts, as it will allow you to pay off your creditors and potentially make a profit. You should speak to an insolvency practitioner if you are considering selling your business, as they will be able to advise you on the best course of action.
What are the consequences of not taking action?
If you do not take action when your company is insolvent, you could be personally liable for the debts. This means that your creditors could take legal action against you to recover their owed money. In addition, you could be banned from running a company for a period of time. This can have a serious impact on your ability to earn a living, so it is important that you take action as soon as possible.
Where in Nottingham can I find insolvency & finance support?
There are a number of places in Nottingham where you can get support with insolvency and finance. One option is to speak to an insolvency practitioner. These professionals can help you to assess your options and make the best decision for your company. Another option is to speak to a financial advisor. They will be able to provide you with impartial advice on how to deal with your financial problems.
CFS is based in Nottingham, London, Derby and Uttoxeter and provides insolvency & finance support to businesses in local areas across the UK.
Finally, you can also contact the Citizens Advice Bureau for free and impartial advice on dealing with insolvency.
So if Nottingham insolvency is something that you should take very seriously. If your business is in trouble, there are a number of options available to you. You should speak to an insolvency practitioner as soon as possible to discuss your options and find the best solution for your business.