What does ‘insolvency’ mean?
If a company or business is ‘insolvent’ it means it can’t pay its debts when they are due. There are many possible causes of a company becoming insolvent – most of which are often not necessarily the fault of the company’s directors.
The below ‘Insolvency checklist’ is designed to help you spot the signs so you can take action.
We have overdue VAT, PAYE, CIS and/or corporation tax arrears to HM Revenue & Customs (HMRC)
We have a fear of submitting tax returns on time because they will only increase the amount due
HMRC and/or other unpaid creditors are starting to chase for payment. Letters, telephone calls, CCJs or even threats of court action to wind up your company
Our suppliers are unwilling to continue to provide stock and withdrawing credit facilities making it very hard to fulfill orders
We are being forced to negotiate time to pay arrangements with certain creditors
We are experiencing cash flow difficulties
We are regularly hitting the bank overdraft limits
We have bounced payments
Our credit rating is ‘Poor’
We have a lack of up to date financial information to make decisions
We have experienced industry changes or innovation that affect sales
We have recently lost key members of staff
We have seen an emergence of new and strong competitors
We have had to invest personal money into the company to keep it afloat
Often there is nothing left after the bills are paid for the directors/business owners
The directors/business owners are feeling unable to keep on top of it all, suffering stress and sleepless nights
At The Liquidation Advice Centre, we support long-term business success by helping companies fail more easily allowing those involved to start afresh, learning from their experience.
We do this by providing cost effective and accessible support to company directors/owners to cease to trade and place their insolvent company into Creditors’ Voluntary Liquidation (CVL) when continuing is no longer the right thing to do.
If the majority of the above points on our ‘Insolvency Checklist’ apply to your company don’t hesitate to contact us. We can provide the support to help you take the next steps needed.
If the majority you ticked the majority of the above points, don’t hesitate to contact our experienced team on 0333 241 9019 or try our free CVL quote calculator.
If you are looking for more liquidation information please try our resources section.