Thanks to the effects of the Coronavirus pandemic, along with everything else that has happened in 2020, many businesses are struggling to stay in with their financial turnovers and remaining profitable is becoming increasingly difficult.
Simply ignoring your debt problem won’t help to make it go away, so you need to look for an actual solution. Plus, if you’re a director of a limited company, it is your legal responsibility to seek out professional advice if you believe your company may be destined to go through the insolvency process.
Nottingham based licensed insolvency practitioners
Nottingham-based Insolvency Practitioners, what action should you take as a director if you believe your business is insolvent? Keeping a company afloat in Nottingham can be extremely difficult, due to it being one of the hardest areas for ventures to grow and compete, thanks to the competition and high commercial costs. Our office is located just outside the city centre, we offer free and regulated advice with you would expect from a licensed practice.
Confidentiality is assured and we offer key advice on the protection of your interests. Like most insolvency firms we play a major role in working out the best solution for closing your business. If you trade as a sole trader, or are a director of a limited company we are here to help.
By reading this article, you’re taking your first steps in the right direction and clearly looking for a solution to your business’ money problems. Here at Business Insolvency Helpline, we offer help from our team of experienced professionals, which includes licensed insolvency practitioners, whom have the knowledge and expertise to single out the financial problems within your company and stop them at their roots.
As a firm of licensed insolvency practitioners we have been in business for over 20 years, we have dealt with distressed businesses and individuals presenting a wide variety of situations. We offer a turnaround service to our clients, meeting personally with them throughout the Nottingham city area. Our services are bespoke service to clients as all issues are different, pre Covid-19 we would offer meetings at or near the clients’ premises, or our offices whichever is more convenient.
10 point assessment plan
A few assessment questions to establish your company’s current position:
- What is it that is making you worried about the situation of your business? Be honest with yourself.
- Is your company or business insolvent? Can the company pay its debts as and when they fall due?
- If the business is insolvent this does not mean that your company or business has to stop trading today. It means that you as a director you have a legal responsibility to learn about the situation and act accordingly.
- Comply a spreadsheet with all the company’s debts, this creditors report will be a positive step. Include any bank loans, P2P funding, asset finance, suppliers and landlords.
- Do not go on last years’ accounts, take the information from up-to date creditor statements and your accountancy software if its up-to date. This will get a clear picture of the company’s financial position.
- Now on a different column on the spreadsheet add all the assets the business has. Include cash in hand and at bank, stock, work in progress, debtors (those are your clients that owe you money). Also add assets such as vehicles, machinery or property.
- Write down the positive stuff like good products or services, order book, promised contracts etc.
- Having this information on a spreadsheet you will be able to see quickly whether there is more in the negative column than in the positive or vice versa.
- Now think if the business has a good future. Assess what is required to get the business back on a safe and sound footing. Again be honest, if you see too many problems to continue then you may have to stop.
- Speak to experts who can take an outside view if the business is viable to go forward.
Nottingham’s Leading Insolvency Specialists
Our team of Insolvency Specialists in Nottingham offer individuals, partnerships or companies a professional service, with care and empathy.
At Business Insolvency Helpline we provide:
- Advice offered to Nottingham based professionals, businesses and firms
- A clear assessment of your option before a formal insolvency process begins
- Calm and efficient resolution of insolvency issues
Here at Business Insolvency Helpline, we are here to help and advise clients on which is the best possible route for under performing business. Our clients vary from individual professionals to medium sized companies across the UK.
For any firm or individual facing the possibility of insolvency in the Nottingham area we are a locally based Insolvency firm, that can advise you on how to deal with formal insolvency procedures correctly.
We advise on processes such as:
- company voluntary arrangement
- individual voluntary arrangement
Company insolvency statistics for England and Wales – September 2020
Total company insolvencies decreased in September 2020 when compared to September 2019. In September 2020, there were a total of 926 company insolvencies in England and Wales, which included:
- 742 creditors’ voluntary liquidations (CVLs)
- 44 compulsory liquidations
- 109 administrations
- 31 company voluntary arrangements (CVAs)
- 0 receiverships
The overall number of company insolvencies decreased by 39 per cent in September 2020, when compared to the same month last year. This was primarily driven by a decrease in the numbers of CVLs and compulsory liquidations which fell by 32 per cent and 81 per cent respectively. There was also a 31 per cent decrease in the numbers of administrations.
The number of CVAs increased in September 2020 by 41 per cent when compared to the same month last year. However, The Insolvency Service do highlight that the number of CVAs in September 2019 (22) was lower than typically seen in other months during the year.
According to The Insolvency Service, the overall reduction in company insolvencies was likely to be, in part, driven by the range of government measures put in place to financially support companies in response to the coronavirus pandemic, including the Corporate Insolvency and Governance Act.
Business Rescue in Nottingham
Our professional network in Nottingham has the experience to act calmly and effectively, taking the pressure off stressed company directors.
If you need a practical introduction to the work of an experienced Insolvency & Turnaround Specialists in Nottingham contact us. If it is not possible to rescue a business, we assist clients by employing a number of tactics.
Your insolvency practitioner will be able to inform you of the best option for your business. These are three of the most common options for insolvent companies:
Each of these options has advantages and disadvantages for your business, and none are perfect for every business. Depending on your company’s financial situation and viability, one of the above options may be more suitable than the others. Get in touch to find out more.
Nottingham office :
Tollhouse Hill City Gate East,