Facing the reality that your business may be insolvent or that you are in serious financial difficulty can be extremely hard to do.
It can be easier to leave the letters from your creditors lying unopened and to ignore the phone calls chasing outstanding payments rather than face the reality of what is in front of you.
The pressure of these worries can build and build, leaving you feeling trapped and uncertain about your future but if you are concerned about the viability of your business call us as soon as you can.
How Do I Know If My Business Is Insolvent?There are some signs that could indicate that your business is in a position of insolvency. Some of these are:
- No cash – if you cannot pay the day to day running costs of your business you may already be insolvent.
- Creditor issues – when you are getting calls or letters asking for immediate payment from HMRC, credit card providers or your mortgage company you may get a winding up order shortly.
- No more credit – your bank won’t lend you any more money and your suppliers say you have reached your credit limit.
- Unpaid wages – where staff or company directors are not being paid.
Some or all of these signs are indicators that your business is heading towards insolvency, if it isn’t already there so if you recognise some of these things in your own business, call us today to discuss your options.
Insolvency - What Can I Do?You and your fellow directors are responsible to ensure that act in a responsible way and to act in the best interests of your creditors. This includes making the difficult decision to stop trading, take steps to discuss the circumstances with an insolvency professional and to advise HMRC and your creditors of your insolvency.
In some limited situations, a restructure of your business may help to avoid insolvency, but this is normally only an option if you tackle the issues early on.
What Can Berley Do To Help?We won’t judge you or the circumstances you find yourself in, nor will we dissect all the mistakes that have occurred throughout the process. What we will do is to help you to be clear about what the future holds for you and your business, which will help you to come to terms with this difficult situation.
We offer you a Free Initial Consultation to discuss your situation in confidence. This will allow us to explain the options open to you and the implications of these options so you can consider carefully what your next steps will be. Once we have agreed on a plan of action, we’ll support you through the process and hopefully put you back in a position where you can trade again.