Business recovery - areas of specialism
- Business recovery advice
- Cash flow management
- Debt recovery & enforcement
- Directors' duties
- Directors' liability
- Distressed businesses
- Landlord waivers
- Personal guarantees
Business recovery FAQs
I think my business is close to collapse and I am afraid to speak to my bank manager because the overdraft is already at the limit. Orders are slowing and customers are slower than ever to pay. What are my options?
As a director of a Company, you think your business is in trouble. You need professional advice. Directors can in some circumstances be made responsible for the Company’s debts if they continue to trade when the business cannot meet its liabilities as and when they fall due. You need advice on a full range of options that may be available to the business. The longer you soldier on, then the less chance you will have of avoiding insolvency.
I am a small sole trader and my customers are slow to pay. I have bills mounting up and my creditors won’t give me time to get money in before I pay them.
Cash flow is the life blood of any business, no matter how large or small. It might be that you need a firmer arrangement with customers. Late payment will entitle you to claim interest, even if you are not operating with any terms and conditions of trade (which you should). Maybe in your case you need extra business funding or a review of other options to help raise cash flow. We can help manage your overdue invoice problems and let you concentrate on your business.
My business partner has a County Court Judgment for a personal debt. The creditor is trying to get the Court to put a Charging Order on his house. I am concerned that this may have an impact on our business partnership.
You are right to be concerned. The bad credit facility of a partner can affect the credit working of the business. Also, the creditor could try to get hold of partnership assets to satisfy the debt.
This sort of thing is often a sign of deeper financial problems. Both the business and your partner need advice about what he should do. If there are too many debts, your partner may need to consider his options and you both need to consider how best to protect the business.
One of our largest serving customers has financial problems. We have been concerned about being paid by them, but they have had to be put on stop because they owe more than £50,000 which is over 90 days old. We have had a letter from an insolvency practitioner saying the customer is putting together a CVA. I’m not happy about this because the customer hadn’t mentioned anything like this to us. What does it mean?
Unfortunately, the practicalities of this are that you are probably not going to recover all of the debt. Although you may not like it a CVA will be approved with a majority of creditors’ approval. If the CVA does not go through, it will possibly mean that your customer will be wound up as the CVA is the last resort before insolvency. You need a practical assessment of the position to get the best return from a bad situation and you need sound advice as to your options.