How to tell if your business is facing insolvency and what to do about it

Thinking about insolvency is never ideal as it can leave you feeling helpless and frustrated. It’s a good idea to find an ally during these tough times, especially one that can help you get a grip on your finances.

An insolvency advisor like Berley Chartered Accountants can do just that. We’ll be with you every step of the way, supporting you through any difficult decisions you may have to make.

What are insolvency red flags?

There may be a number of reasons why your business is facing insolvency. Some of the red flags include:

  • No money – inability to pay the day-to-day costs of your business
  • Issues with creditors – HMRC, credit card providers and mortgage companies demanding immediate payments
  • A lack of credit – inability to borrow more money from the bank and negotiate deals with suppliers
  • Employee’s wages going unpaid

If some of these indicators apply to your business, you could be heading towards insolvency. Insolvency doesn’t mean you have to go bankrupt though, although insolvency can certainly lead to bankruptcy. This is why it’s important to talk to insolvency practitioners to fully explore your options. Early intervention gives your business better prospects of survival and success.

Berley: insolvency practitioners

Deciding to stop trading and liquidate your company can be tough, but as a business owner, it is vital that you take responsibility for your employees and any outstanding commitments. At Berley, we can give you the advice and support you need to help you make tough decisions. In some cases, considering voluntary liquidation may be the best course of action. This means notifying HMRC and your creditors of your insolvency. In other instances, insolvency may be avoidable, particularly after a business restructuring. Through reviewing your business’s finances, Berley can advise you on your next steps. Our goal is to help you understand what the future holds for your business and to work with you to develop an action plan.

Contact Berley today

For more information on how Berley can help you with insolvency advice and solutions, call us today on 020 7788 8261. Our insolvency practitioners can work with you to ensure the best decisions for your business’s future.