The quick answer
The best way to stop your business from becoming insolvent is to take advice from a Licensed Insolvency Practitioner (“IP”) like us earlier rather than later. The facts an IP will need to know in order to help you are:
- What do you owe to creditors, the bank, HM Revenue and Customs.
- How many staff do you employee and what will it cost to make them redundant.
- What assets does the business own such as bank balances, debtors, fixed assets.
- Will the business trade profitably in the near future.
We will use this information to form an assessment of your options.
In more detail
Insolvency ends up falling into two types of processes.
The main process is deciding whether you are going to let a creditor (someone you own money) push you into insolvency, or whether you take charge and choose insolvency as the best outcome to solve your problem.
The simple fact is that no one sets out to become insolvent – it happens because the business does not make enough profit over time or the owners take out too much from the business. The latter happens a lot and is often caused by a downturn for example from the closure effects of Covid-19.
In either case, it is not easy to ask for help, and who should you trust? The law is a minefield and there a number of unregulated advisers out there who say they can help, but can not.
A good starting point is asking a good solicitor or accountant to point you in the direction of someone qualified, and most of the time a trusted adviser will send you to a Licensed Insolvency Practitioner like us.
As Licensed Insolvency Practitioners, we are trained as well as carefully monitored to make sure we give sensible, supportive and impartial advice.
We understand what can be achieved in the available time frame you have. We can save a lot of wasted time and heart ache (and often wasted fees).
If you need advice, ensure you get it early on, and if you are unhappy with the advice you receive by all means opt for a second opinion.
Contact Us Today
If you are worried that your business is approaching insolvency we can help. Please get in touch today.