If you run a Limited Company that is in financial trouble, there are usually several options available to you and some you may not know about. The earlier you deal with it the more options you will have.
We give impartial and confidential advice on those options.
Our aim is to assess your financial situation by asking questions to help you decide what is best for you.
This may be:
- Refinance or ask creditors for Time to Pay.
- Liquidation and close or start a new company.
- Administration and a sale.
- A Company Voluntary Arrangement or a time to pay agreement.
If you already know what you want to do, for example, you have had enough and just want to close and go into liquidation we will help you do that. If you are under pressure from a supplier, banks or HM Revenue & Customs but want to try and save your business will we help you try and achieve that.
We give confidential, supportive and impartial advice. We can meet you at your premises or you can come to one of our offices.
Whatever the outcome we prepare all the paperwork and make the process as simple as possible for you. We deal with all creditors and employees and take that pressure off you.
We have listed below the possible options for a Limited Company in more detail. Again, we can help you decide the right one for you.
We have listed below the possible options for a Limited Company and some information about each one. Again, we can help you decide the right one for you if you are not sure.
Limited Company Insolvency Options:
- Liquidation or Creditors Voluntary Liquidation (CVL): We handle all the paper work and deal with creditors and shareholders if your business is not able to be saved. This results in the closure of your company (but does not stop you starting a business again and buying the remaining assets if you want to). The process to liquidate usually takes between 8 and 15 days. It stops all creditor action.
- Administration: We obtain a Court order which stops all legal action including HM Revenue and Customs, banks, bailiffs and suppliers. This gives you time to evaluate your situation and decide if you want to keep trading, sell the business or close it down.
- Pre-Pack Administration: This involves lining up a buyer for the business just before it goes into administration. It means the business can usually carry on with minimal disruption. It can be sold to an unconnected buyer or the existing directors.
- Company Voluntary Arrangement (CVA): If your limited company is viable but has current or historical problems that have been solved, this option freezes all current debt, allowing you time to pay it back. You can then continue trading with the same suppliers and company name. Typically these arrangements last for 3 to 5 years, interest is frozen and not all of the debt is paid back. We take over communication with your creditors regarding the debt owed so you can carry on running your business. Our aim is to take the pressure off of you. We will draft all of the documents needed to get the court order and be there every step of the way.
- Compulsory Liquidation: A creditor (someone your company owes money to) can apply to have the company would up by the Court. They will usually issue a statutory demand first. They then issue a winding up petition showing a court date – which is the hearing to decide if your company will go into liquidation. Often this is all just a threat to get paid but one issue is that the winding up petition gets advertised first in the London Gazette – and this can freeze your bank account making it impossible to trade.
- Members Voluntary Liquidation: This form of liquidation is used for solvent companies. It allows the shareholders to pay 10% tax on the remaining funds rather than income tax on dividends. A Members Voluntary Liquidation allows the shareholders to claim Entrepreneurs Relief. We will draft all the required paperwork and meet with you to explain the process. Together we will decide upon a time plan so you can clearly see when the company will be dissolved, when the money will be paid to you and how long this whole process will last.
- Informal: We assist you with your business finances without using any of the above procedures. Typically we may help you refinance or agree an amount of time to pay key creditors such as the HMRC or find you a business angel who makes an investment.
Telephone or email us and we can have an initial discussion. There is no initial cost and all advice is confidential. We can arrange to meet or do all the paperwork by post if you prefer.
We will typically ask you to bring to any first meeting:
- A summary of everyone your business owes money to.
- Copy letters from any hard-pressing creditors.
- A list of your company assets as best you can.
- The latest trading accounts and figures.
- Photo identification.
You are welcome to bring anyone with you to the meeting such as your partner or your accountant.
We are Licensed Insolvency Practitioners so can act as the Liquidator, Administrator, Supervisor or Nominee.
Our aim is to help take the pressure off you.