Posts Tagged ‘finances’

Do you recognise the signs of Corporate Insolvency?

Do you recognise the signs of Corporate Insolvency?

Running your own business is both stressful and time-consuming and as a CEO or director, it is fairly easy to get caught up in the day to day tasks and not realise the fact that your company is hurtling towards the disaster that is corporate insolvency.

Corporate insolvency is when your businesses financial circumstances mean that you are unable to pay your debts, and if you find yourself in this situation it can be extremely damaging to your business.

Luckily there are a number of warning signs that precede corporate insolvency, so keep your eyes peeled for if you can notice any of these things happening within your company.

You have reached maximum borrowing

Most businesses need to borrow money at some point, but reaching the limit of your bank overdraft tends to be a sign that you should be concerned about corporate insolvency. If suppliers are refusing you credit and you do not own sufficient assets to obtain a secured short-term loan, this can also be a problem.

There’s no money to pay staff wages

If paying pay staff wages is proving to a challenge and you will only very slimly be able to make the payments that you need to, this is a sure sign that you are heading for insolvency. Technically, if you are unable to pay staff wages then you are considered to be insolvent.

You are receiving demands for payments

If you have received a Statutory Demand from a secured or unsecured creditor, or are constantly receiving threats of legal action against the company for unpaid bills, it may be time to consider the fact that your company could be headed for insolvency.

A Statutory Demand is often followed by a winding up petition, which could effectively mark the end for your company.

You don’t have the right systems in place

Without the use of cash flow forecasts, aged debtors reports, bank reconciliation’s and sales forecasts, it can be difficult for businesses to assess their performance and gauge how secure they are financially.

It also means that you are unable to see how much money you owe, which puts your business in a very vulnerable situation regarding your debt.

We have a wealth of experience dealing with companies slipping down the path that is “corporate insolvency”. If you are concerned about any of the issues discussed in this article, get in touch with us today to discuss your individual options.

 

The Positives of Bankruptcy

The Positives of Bankruptcy

The word bankruptcy tends to fill most people with feelings of dread. It’s hard to deny the fact that the word has typically negative connotations, It is usually associated with financial chaos and the diminishing reputations of those associated with it.

While people tend to only focus on the negative aspects of bankruptcy, there are a number of positives that can come as a result of considering it as an option.

There has been a steady rise in personal insolvency rates over the last couple of years, indicating that more people are considering this as an option.

If you are wondering whether bankruptcy is a viable option for you, read on to find out about some of the positives associated with it.

Bankruptcy triggers automatic stay

An automatic stay is an injunction that is issued as soon as you file for bankruptcy. Once this is issued, it stops all lawsuit and collections against the debtor. Therefore, when you file for bankruptcy, you will no longer be at risk of having property and other possessions repossessed. You will also stop receiving calls and letters that threaten to sue you.

It gives you a chance for a fresh start sooner

As soon as you file for bankruptcy you can start taking steps to getting your finances back under control and improving your credit score. Without the ability to put a stop to the chaos that is credit gone awry.  Some people would never get their finances under control again, but bankruptcy can enable that to happen.

You’ll start to improve your rating

Although, a bankruptcy filing can remain on your record for up to 10 years, it will eliminate many debts. Individuals will begin improving their credit rating after filing for bankruptcy.

It gives you a chance to reflect

While it doesn’t sound like the most glamorous situation to be in. Filing for bankruptcy is a good opportunity assess and review your financial history. Law that stipulates that anyone who files for bankruptcy is required to receive some form of credit education. Therefore, you’ll have to chance to find out how you can avoid making similar mistakes in the future.

To understand how bankruptcy can be a positive way out, and help you get back on your feet, contact our team today on 0330 159 5820.