Solutions to Your Company’s Debt Problems

  • Positive effective advice for directors
  • Immediate strategic advice allowing you to retain control of your business

We aim to assist directors to find a business rescue solution to their company’s debt problems efficiently and cost effectively. We assist companies facing a variety of financial challenges across pretty much all industry and professional sectors.

As a director feeling under pressure from creditors, whether it be HMRC or a trade supplier threatening legal action, you need someone who can identify the cause of your financial difficulties quickly and recommend a suitable strategy that will either save the company or the underlying business. Here at Corporate Financial Solutions, we have highly qualified and experienced insolvency practitioners who truly understand the dynamics and pressures of running a business. We are able to move extremely quickly and usually we can provide you with a fully workable solution to your financial problems within two to three hours of first meeting with you.

 

It is the speed of our response and the depth of our business rescue and turnaround knowledge that sets us apart from our competitors.

 

Our Business Rescue Service

To fully understand your current financial difficulties, we first need to understand your business and the issues that are causing such financial problems. A call to our office is the starting point in bringing a halt to the current financial pressures that you feel and the start of turning your business around. We will explain more about the various procedures a little later in his article.

Free Initial Advice and Meeting

Our initial advice, including the first meeting with you is completely free of charge and without any obligation on your part. Indeed, in certain more complex cases we may need to spend further time with you, understanding your business to ensure that we can give you the best solution possible-again, this is completely free of charge. We will only look to charge fees, where we have agreed a viable workable solution for you.

At Corporate Financial Solutions we have particular in depth experience and expertise in dealing with HMRC to restructure any outstanding VAT and PAYE/NI arrears. HMRC are usually one of the key creditors pressing for payment. Over the years we have developed a good working relationship with HMRC and are best placed to negotiate a workable repayment plan with them, if circumstances permit.

Our insolvency and turnaround partners are expert in the field of restructuring and refinancing most companies. We understand that most companies at some time will experience some financial problems, which may well be not of your own doing and may only be short term, but do require some additional help. Ignoring any early warning signs will usually only lead to greater problems – we cannot stress enough the importance of contacting us as soon as you have any concerns over the financial performance of your company. The earlier you contact us, the more options that will be available to you.

It is Essential That We Fully Understand Your Business

The starting point in our work is a review of the business. It is absolutely essential that we fully understand what you do and why you are currently under pressure financially. We focus on the critical issues that the company is facing and provide clear, concise and workable solutions. Our solutions are tailored specifically to suit the needs of the company’s directors, whilst at the same time effecting the best possible outcome for your creditors. This is particularly important, if you are looking to continue to trade with similar suppliers.

Most directors searching for help in dealing with their company’s financial problems, have usually reached a stage where the pressure from suppliers and HMRC is almost unbearable, and have usually exhausted all feasible options of finance. In such circumstances it may be that an insolvency process can help your business emerge in a much stronger position. Our highly qualified partners are available to offer you free advice immediately. If you have reached this far on the page, then without being overly presumptuous, you almost certainly should call us now. The longer you leave dealing with the company’s financial problems, the greater those problems become and more importantly, the number of options reduce. We have set out below a brief explanation of the various business rescue, turnaround and insolvency procedures available.

Business Rescue Procedures

Business Rescue, Turnaround and Insolvency Procedures Available

Administration
Company Administration is one of the options available to insolvent companies where there is a sound underlying business, once the current debt pressure has been removed. Administration allows for the reorganisation of an insolvent company, whilst giving protection from its creditors. Administration can be initiated by either the company’s directors, its bankers or funders who hold a qualifying floating charge or by a creditor, and is a very effective restructuring mechanism. The primary aim of most Administrations is to allow the business to continue free of the previous debt it has accumulated. In certain instances, this may be through what is known as a “pre-pack” Administration. Effectively this is where a deal to sell the assets is agreed as part of the Administration planning process and completed almost immediately after the Administrator is appointed. Clearly there are many issues to consider – far too many to detail in this short briefing. We will ensure though that all relevant information is provided to you in order that, with our help, you are able to make the right decision for your company.

Company Voluntary Arrangement – “CVA”
A Company Voluntary Arrangement is effectively a scheme, whereby the company continues as its own legal entity, unlike in Administration, having agreed to pay its creditors a certain percentage of its debts over a period of time. A CVA is usually implemented where the company can see that it can pay all or most of its current liabilities, but needs extra time to do so. Typically most CVA arrangements run for between two to five years.

A CVA is a legally binding agreement between the company and its creditors and once it is approved by 75% of the creditors voting by value, then all creditors are bound by the arrangement. Most arrangements provide for the company to make regular monthly or quarterly contributions to the insolvency practitioner appointed (known as the Supervisor). Once the aggregate agreed amount has been paid over and distributed to creditors, then the arrangement is deemed to have been satisfactorily completed. As with Administration, there are numerous issues to consider before deciding if such a scheme is suitable. We will of course ensure that you have all of the relevant information available to make the right decision.

Liquidation
Liquidation is usually the end of the line for a company, resulting in the closure of that company, the sale of its assets and if sufficient funds are realised, a distribution to its creditors. Liquidation is not really a business rescue tool, but no page on insolvency would be complete without a brief explanation of the various types of insolvency.

Creditors’ Voluntary Liquidation – CVL
A creditors’ voluntary liquidation occurs where the directors and shareholders recognise that the company is under such financial pressure that it can no longer continue to trade, and that there is no real prospect of a business rescue scheme being implemented. Meetings of the directors and shareholders are convened at which resolutions to wind up the company are passed. A meeting of creditors is then convened to consider these resolutions and to listen to the directors’ explanations for the company’s financial difficulties. A Liquidator is appointed, whose primary role is to maximise realisations for the company’s assets and to pay a dividend to creditors where funds allow.

Members’ Voluntary Liquidation – MVL
This is a solvent liquidation process – one which will entail all creditors being paid in full and any surplus funds being returned to shareholders. A MVL is usually implemented either for the purposes of reorganisation or for tax reasons – usually to take advantage of Entrepreneurs’ Relief.

Before contemplating a MVL, we strongly advise that directors/shareholders seek detailed tax advice from their own accountants or auditors.

Compulsory Liquidation
A compulsory liquidation is one that arises through court action. Usually a disgruntled creditor will issue a petition to wind up the company through the courts. Once a winding up petition is granted, the Official Receiver will be appointed as Liquidator. The OR will then decide whether to keep the case within the OR’s service or to pass it to a licensed insolvency practitioner.

UK Wide Support for Businesses from our Offices in London & Nottingham

If you are experiencing company debt problems, contact us today. We will provide free advice and a no obligation consultation.  Call or fill in our enquiry form and one of our licensed insolvency practitioners will get in touch with you within 24 hours.

We have offices in London and Nottingham, so we are well placed to support businesses UK wide. We are happy to travel to meet you at a convenient location.