Just because your company seems to have gone down,it doesn’t mean that it has failed completely. Basically,a company is likely to become insolvent is they can’t pay bills when they become due or if they have more liabilities than assets on their balance sheet. See this company insolvency advice and you should be able to survive this period.
Hire A Good Insolvency Practitioner
As much as you can handle the insolvency process in-house,you should take the time to hire a good insolvency practitioner. Of course,there are a few things to consider when looking for the right insolvency practitioner. For instance,are they licensed? What’s their experience in dealing with company insolvency? How much do they charge to provide company insolvency advice or direction? Can you trust them during this process? Review any possible candidates and do your research to find the best company for the job.
Reach Out To The Creditors
Don’t wait for the pressure to get too high before you reach out to the creditors. Actually,you should reach out to the creditors and make an informal agreement on how they will get their cash back. Note that,you will have a hard time negotiating with your creditors if they are cross with you. However,if you approach them at the right time,they will give you more time to pay the debt before they decide to pursue the issue through the courts.
Search For Money To Inject In The Company
When times are hard,most directors often inject money into the business. If you don’t have any cash,you can take a personal loan or a credit card loan and inject it into the business. It’s a very risky strategy and it might be the last resort,but it could get your business out of this horrible situation. You can ask for help from family or friends. But perhaps it would be better to can ask them to invest in your business in exchange for shares.
Look For Alternative Financing Options
There are other financing options you can select to help you avoid diluting your company’s ownership or selling the company’s assets. One of these financing options include invoice financing. In this instance,a third party (such as an independent finance provider or a bank) agrees to purchase all your unpaid invoices for 85% of their value. The third party will collect the payments instead of you and give you the balance (and in some cases minus a small charge).
Restructuring The Business
In many cases businesses end up being ok. However,the current structuring could be stopping he business perform as well as it could. To survive insolvency,you could consider restructuring the business. Here,you should check out your entire business from the staffing,outsourcing,downsizing and moving to new premises this including renegotiating existing contacts. Here, the insolvency practitioner should help you do everything possible to survive insolvency or avoid it altogether.
Finally,company insolvency doesn’t need to be a horrible affair. With the right insolvency practitioner giving you help,you can try out any of the advice given here and get through this tough situation without any worries.
For more information please visit AnthonyBatty.com