One of the easiest way to avoid Administrative Receivership is to pay back the bank debt that you owe. Alternatively, keep a dialogue going between you and the bank and try and convince them that it is better for you to keep trading.
Administrative Receivership occurs where a bank or lender appoints an Administrative Receiver because you owe the bank or lender a debt that has not been paid back. They will be able to do this if they have a debenture and it was registered at Companies House before the 15th September 2003.
The bank or lender will only start the process of appointing an Administrative Receiver if you breach the terms of your loans or overdrafts and they are concerned about how they will get repaid.
In some cases, the bank will be concerned because you have not kept a dialogue going with them or you suddenly post a very bad set of figures without explanation. Remember, all the bank want is for you to be successful and for them to be repaid their money in accordance with the terms of how they were lent.
Overall banks do not like forcing Administrative Receivership and it is a last resort.
If you would like to know about Administrative Receivership speak to our team today, we’re local.