The question is ambiguous and has two meanings; the timings or the right circumstances for a Company Voluntary Arrangement (CVA)? The answer in both cases however – is as soon as possible if you realise the company has a viable future, but has had historical financial problems that have now been or can be solved. The longer you leave it, the more likely creditors will take action to force the company into liquidation. If you don’t know whether a CVA is a good idea for your business or not it is best to talk to a professional like us, as we are licensed insolvency practitioners. We can ask you the right questions to find out what the right options are for you. The sort of circumstances that usually make a CVA the right decision are:
- You had some problems in the past, but these are solved. Some examples would be a pension shortfall claim or you have closed some unprofitable branches.
- You can predict that going forward you can make a profit.
- You have the support from some of your main creditors, that should continue.
- You may have some company assets, trading name, brand or certifications that you need to continue with in your company name.
A CVA is not as fast a rescue process as an Administration and can take a while to put together. You have to make a written proposal to creditors which includes forecasts going forwards and cash flows. It also includes a company history, last balance sheet and profit and loss figures as well as good reasons to creditors why a CVA is fair to you and them. We cover England and Wales but have an office in Poole, Dorset and in five other locations in the South West. Tweet