Warning Signs: Early Action Improves Chances of Recovery

We are currently in one of the most difficult and unpredictable financial climates that businesses have ever had to endure, and the fear of insolvency is very real. However, making the decision to talk about the problem is one that is often feared by many directors and business owners!

We recognise that our profession is often seen as all doom and gloom and people find the prospect of speaking to an insolvency practitioner daunting. However, we strive to provide a more positive, understanding and empathetic service, reassuring you that there are solutions available and the sooner you seek advice and support, the greater the chance of survival.

As the financial support and protective measures put in place by the government are gradually being removed, companies are likely to feel the real impact of the lockdown. Directors need to be aware of the warning signs and act as soon as any of these are identified:

Overdraft at limit: Banks refusing to increase overdraft facilities to help cashflow.

Creditor pressure: Increased demands and threat of legal action from creditors.

Difficulty in paying essential bills: Unable to pay staff wages, HMRC, rent or suppliers.

Poor Cashflow: Considering commercial finance or personal savings to find emergency cash to continue trading.

Loss of major contracts: Resulting in cash flow problems.

Business owners and company directors should be looking forward and taking pro-active measures to help their businesses, which may involve consulting an insolvency practitioner.

Running a company is tough; cash rarely flows in a steady stream and the difference between those that survive and those that fail is often determined by how early they seek help and advice.

Conclusion – Act quickly!

If your business is struggling financially speed is of the essence and it is key to seek our advice as soon as any warning signs have been spotted.

Whilst every company’s situation is unique, Simply Corporate have the experience and expertise to advise on all conceivable scenarios. Acting without delay allows for a wider range of options to be considered which provides a better chance of survival!

Blog by Simply Corporate