Corporate recovery and insolvency advice could benefit as many as 80% of UK businesses, this is the percentage of companies that face some form of financial difficulty in their life cycle. There are a million and one factors that can affect a company’s financial well being, which can include anything from the external issues of a poor economic climate, to a poor business strategy. Here are the top causes behind business bankruptcy.
Corporate recovery, don’t follow in the footsteps of Colin Hendry
Corporate recovery advice can help individual directors whose assets may be linked to their business – it isn’t just isolated to the company’s welfare. If you are the director of a business that goes bankrupt, it could have a huge impact on you and your family. Take footballer Colin Hendry, who was recently declared bankrupt. His financial situation and business interests have been left in tatters, as have the effects it has left on his family. Could he have avoided this or at the very least reduced the severity of its impact with sound insolvency advice.
Use insolvency advice as prevention not just a cure
Many businesses have been faced with seeking insolvency advice as the tough economic climate forces many companies out of business or at the very least into financial crisis.
Official statistics from the Insolvency Service revealed that during 2011, there was an increase of between 2% and 4% of businesses going into liquidation, when compared to the year before. The figures for UK businesses were in contrast to that of individuals.
Corporate insolvency advice from tri group – how we will improve your chances of survival.
When any company is in financial difficulty and needs insolvency advice, it’s vital that advice is sought at the earliest possible stage. The earlier that tri group are brought in, the greater the prospect of finding a solution that will enable the business to survive; rescuing your business is always our first objective. We start by ensuring that we understand the reasons for the difficulties and seek to remedy them.
Misleading creditors might not be a good idea!
If you’re chasing recalcitrant company debtors this may be a useful case to have up your sleeve. For directors of debtor companies it’s a clear statement that they can’t simply disregard their creditors and hide behind the security of the limited liability of their companies.
More businesses set to need corporate recovery assistance as Euro zone debt crisis heightens
Since the credit crunch of 2008 corporate recovery amongst UK businesses has become common place. British banks have been accumulating equity stakes in hundreds of ailing companies they have lent to. It’s a trend that looks set to end with disastrous consequences for many businesses.
Pre-packs: no change after all
The government has today announced that it will not be changing the legislation on pre-packs in administrations after all. Pre-packs, or pre-packaged business sales, have always been controversial. In essence, they involve placing a company into administration and the business being immediately sold, often to the current management.
Don’t wait until you are in deep water to get insolvency advice
A business may need insolvency advice or be considered insolvent if it doesn’t have sufficient assets to cover its debts, or it is unable to pay its debts as and when they are due. If you monitor your businesses actual performance against your budget and the cashflow forecast regularly, this will give you an early warning of potential problems. You can then take action to avoid insolvency.
Need Insolvency Advice? Ex-Premiership footballer gambled his way to an IVA…
John Hartson, the former Wales, Celtic, Arsenal and West Ham striker, has recently entered an Individual Voluntary Agreement, or IVA. An IVA is a means of dealing with debts and avoiding bankruptcy and is typically facilitated by an insolvency practitioner such as those at tri group.