Transport
Transport Insolvency
This is a tight margin and competitive business. It also requires a large investment in high value assets which use up capital to buy or create leasing overheads.
This business can be affected very quickly by the price of road fuel which can all but wipe out the profitability. In addition, the firms we deal with often have staff problems in recruiting staff or problems with employees they cannot easily make redundant to reduce costs.
These businesses tend to suffer from cash flow problems. Wages, fuel, tyres and repairs must be paid for quickly, but some customers can take up to three months to pay.
In addition, with all this going on the cost of vehicles can use up spare cash and capital. Often businesses like these own several vehicles and lorries all on finance. Any trading problems can lead to a reduced credit rating and in an increased cost of finance.
The options for this type of business usually tend to be closure and liquidation as they are unable to keep going without credit.
David Kirk
Kirks Insolvency
David qualified as a Chartered Accountant in 1990 and Licensed Insolvency Practitioner in 1996. David will give you clear and plain language advice about your business’s options and make a recommendation of which route he thinks will work best for you.
★ ★ ★ ★ ★
“Very efficient and cost effective”
I have found Kirks Insolvency to be very reliable in terms of their dealings with us as their customers. They are clear in terms of the process and what it entails and are very prompt when it comes to communications. I would recommend their services.
Michale P
Business owner
WHy use Kirks
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