Administration is a quick and effective way to protect a viable business and stops all creditors taking action. You can get into Administration without the creditors or shareholder’s consent, which saves a lot of time.
Businesses and Administration In detail
If your business is in financial difficulty then Administration can be a very effective way to protect it quickly. Administration means that no creditor (someone you owe money to) can take any legal or recovery action against your business. The objective is to protect the business whilst working out the best solution for all concerned.
Once in Administration, all of the business or just part of the business can keep trading, but sometimes employees are made redundant in order to slim down the business.
Administration lasts for up to one year but has to end eventually, leading to an exit route of either; handing the company back to the directors, a Company Voluntary Arrangement, liquidation or dissolution.
Administration is not right for your business if you just want to close – in that case liquidation is usually more suitable and cheaper.
“Administration is a quick and effective way to protect a viable business, and stops all creditors taking action.”
A Word of advice
If you need insolvency advice the earlier you talk to someone like us the better as you will have more options. We can help, contact us today.