Cash Flow Solutions to solve your Company Insolvency Problems

When faced with Company Insolvency, there are many possible outcomes but, what is most essential is seeking the advice of professionals as early as possible in any insolvency services matter.

cash flowThere are many outcomes of Company Insolvency, which can include: Business Recovery Administration, Liquidation, CVA or a Company Voluntary Agreement; and MVL or Members Voluntary Liquidation. Individual outcomes can include: Bankruptcy, IVA or Individual Voluntary Agreement; and DRO or Debt Relief Orders. Whatever the insolvency issue it is important to seek professional advice as soon as possible.

Getting the right advice is essential and the sooner you do it the better as there may be more options available. In 2012 there were over 16,000 company liquidations in England & Wales, showing a decrease over 2011. Personal insolvencies totalled nearly 100,000 in England & Wales, which was 10,000 down from the previous year. These figures consist of both compulsory and voluntary arrangements. Actual and or potential cash flow problems can be very damaging to a business and the earlier these are identified and acted upon, increases the potential for a better solution.

The most obvious way to turn a failing business around is to cut costs. However, that may work for a short period of time but in the long term, the road to business recovery is to look for cash flow solutions. Seeking advice before the rot sets in can unlock many opportunities, which could assist the recovery of your business. Companies specialising in business recovery and cash flow solutions will assess your liability with HMRC; identify major creditors and set about analysing current and projected cash flows. All this in addition to looking at the structure of your organisation, valuing your assets and identifying where to cut costs could lead to your business being saved. Company Insolvency practitioners are able to negotiate with major creditors to see if agreements can be reached and help you put a recovery plan together, which should be prepared and agreed after exploring all of your options. Once it has been implemented the Company Insolvency Practitioner should monitor and evaluate the plan to see if it is achieving the objectives and turning the company around within the projected time scales.

Seeking a cash flow solution can prevent formal insolvency proceedings providing it is carried out under the watchful eye of a professional Company Insolvency specialist and that it is identified early on. Company directors need to be honest and face up to the figures in front of them. Sometimes its a temporary problem which can easily be resolved or maybe there have been underlying issues for quite some time. Finding a cash flow solution quickly with expert guidance can prevent directors being faced with a winding up petition from their creditors, which risks the company potentially being liquidated.