Just because your company seems to have gone down,it doesn’t mean that it has totally failed. Basically,a company is likely to become insolvent is they can’t pay bills when they are due or if they have more liabilities than assets on the balance sheet. Try this company insolvency advice and you should be able to survive these trials.
Engage A Good Insolvency Practitioner
As much as you can handle the insolvency process in-house,you should take the time to hire the best insolvency practitioner. Of course,there are a few things to bear in mind when looking for the right insolvency practitioner. For example,are they licensed? What’s their experience in handling company insolvency? How much do they charge to offer company insolvency advice or direction? Can you during this process? Review any possible candidates and do your research to find the best person for the job.
Reach Out To The Creditors
Don’t wait for the pressure to get too high before you reach out to your creditors. It is best to reach out to the creditors and come to some agreement on how they will get their cash back. Note that,you will have a hard time coming to some agreement with your creditors if they are angry at you. However,if you approach them at the right time,they will give you more time to clear any debts before they decide to pursue the issue through the courts.
Search For Cash To Inject In The Company
When times are hard,most directors often inject money into the company. If you don’t have any cash,you can take a personal loan or a credit card loan and inject it into the company. It’s a very risky strategy and it might be the last resort,but it could get your company out of this bad situation. You can ask for donations from family or friends. Even better,you can ask them to invest in your company in exchange for shares.
Look For Other Financing Sources
There are other ways you can select to help you avoid diluting your company’s ownership or selling the company’s assets. One of these financing options include invoice financing. In this instance,a third party (such as an independent finance provider or a bank) purchases all your unpaid invoices for 85% of their value. The third party will collect the payments instead of you and give you the balance (and in some cases minus a small fee).
Restructuring The Business
In the long term,some businesses end up being ok. However,the current structuring could be holding the business back. To survive this tough time,you should consider restructuring the business. Here,you should check out your entire business from the staffing,outsourcing,downsizing and moving to new premises as well as renegotiating existing contacts. Here, the insolvency practitioner should help you do everything possible to survive insolvency or avoid it altogether.
Finally,company insolvency doesn’t need to be a horrible process. With the right insolvency practitioner giving you help,you can try out any of the advice outlined here and sail through this tough situation without any worries.
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