Posts Tagged ‘Businesses’

Insolvency at a Corporate Level

Insolvency at a Corporate Level

If you own your own company, the word insolvency is unlikely to be one that you associate with anything positive.

Under the British law, a company is insolvent if it is unable to pay its debts, even after selling all its assets. While insolvency is an undesirable situation, there are several options that companies can take to continue trading.

Read on for some of the best steps to take when dealing with insolvency.

Concentrate on your best customers

When your business is struggling financially, focus on your most reliable, profitable customers. Not taking on any new customers can also help you as you can focus on increasing work for customers you already have.

Cut your costs and repay your creditors

As a business, sometimes it is necessary to look at where you can cut your costs. You can cut costs on several different things including salaries, equipment and marketing materials. Doing so, is one of the most effective ways to get a business back to a viable position.

It’s also important to plan. Think about steps that you can take in order to reduce the risk of insolvency before it has happened.

How to reduce the risk of insolvency

When it comes to managing your businesses money well, there are several steps you can take to reduce the risk of insolvency.

Cash flow forecasting and credit control are both good options. Credit control helps improve the balance sheet of the business. This will reduce the chances of insolvency. Regularly updated cash flow forecasts provide an early warning system of any potential cash flow shortage.

How we can help

At Bell & Co we are well versed in dealing with both individuals and companies that are in debt. We feel that the stigma attached to this has lessened and we are now hoping to help companies recognise all the options that are available to them.

If you and your business is encountering problems regarding your finances, call 0330 159 5820.

Alternatively, read our E-brochure for further information about regarding Bell & Company. 

What could a Labour victory mean for the UK economy?

What could a Labour victory mean for the UK economy?

While Labour missed out on a majority vote in the last General Election, there is still conversation circulating about what a victory for the party would have meant for the UK economy. Read on to find out what a win for left-wing voters could have lead to…

The tax system

Labour’s manifesto was quite heavily focused on tax and a victory for the party would have meant that what they consider to be a fairer tax system would be implemented. As a result, there would have been no increase in tax for anyone earning less than £80,000 a year while the top 5% of earners would have been asked to contribute more money to help fund public services. Corporation tax would also have increased from 19 to 26 percent.

More investment in the UK infrastructure

The Labour Party believes that UK citizens have been held back due to a lack of investment in the UK’s infrastructure and had plans to address this problem by pumping a staggering £250 billion into upgrading the economy over 10 years in the form of a National Transformation Fund. This money would have been put towards completing the HS2 high-speed rail from London through Birmingham to Leeds and Manchester. This would make commuting easier, which could, in turn, have a positive impact on the UK economy.

The way the financial system operates could have been transformed

Taking a nod from successful German and Nordic countries, Labour had a plan to establish a National Investment Bank that would introduce private capital finance and deliver £250 billion of lending power. The National Investment Bank would have filled gaps in lending by private banks, particularly to small businesses and by providing long-term R&D investments.

More people would have a say in the economy

While Britain is a long-established democracy, it’s hard to deny that often, financial decisions that involve our economy are made by a small minority of people. If Labour had achieved a victory in last General Election, the distribution of ownership of our economy would have shifted. The size of the co-operative sector would have been doubled, and a ‘right to own’ scheme would have been introduced that would have meant employees would be the buyer of first refusal when the company they work for went up for sale.

RBS’s Global Restructuring Group Apologises

RBS’s Global Restructuring Group apologises to thousands of customers following pressure from the Financial Conduct Authority (FCA).

This is a two-part blog covering the events of RBS’s Global Restructuring Group (GRG) ‘misleading’ practices.

In this first release we will look at a brief time line of events and what lead to the public owned Bank to apologise. Next week our concluding blog will consider the practical implications and human cost of GRG’s actions over time.

RBS Failed Consumers

At long last after much coaxing RBS and their GRG Department of old have admitted to ‘failings’. Full-page adverts in the broadsheets with an apology from Ross McEwan the CEO at RBS sees them accepting that they failed “some SME customers”.

Up until the last month RBS totally denied any responsibility at all. Various investigations including an incredibility protracted one by the FCA (with a report still expected in the New Year), came to nothing.

I may be cynical but for only the recent exposure by BBC’s Newsnight, Buzzfeed and the excellent Andrew Verity, then this matter would have stayed on ‘the back burner’. Essentially RBS’s own emails found them referring to ‘dash for cash’ and ‘creating defaults’ and some of Lord Tomlinson’s findings and other aspects of RBS conduct are now being accepted as true.

So, a £400 million provision has been made and RBS is to compensate customers wronged by GRG, over time.  £100 million is being used to run and administer this provision/fund. However, all of this is too late.

People who have and had a valid case may pursue the Bank, but this will undoubtedly be a protracted process which RBS must be very careful in dealing with. Many cases will have passed in to some form of Insolvency and the awards may come from Liquidators and alike. If there is any form of ongoing litigation, then again difficulties will arise. These are just two examples of the challenges faced by claimants here.

 

A brief timeline of events:

 

Monumental Consequences

By way of perspective it is essential to remember that 8 years have passed since the crash, and still the new board at RBS are struggling with the consequences of the actions of those at the helm pre-2008. That shows how monumental this was and is – 8 Years!

The FCA has had a difficult task here in trying to tidy up the 2008 crash. That said their report on GRG is still awaited 3 years from its commencement.

So, that is where we find ourselves is this plotted history of GRG to date and surrounding events.

For Part Two Follow The Link Below:

Part 2