Business Debt Management
- Seeking advice from a professional to find business debt solutions is the best course of action to take
- Business rescue and formal insolvency processes could be used as business debt solutions but depending on what stage the debt has reached will determine which option is best
- Having good management accounts can help you avoid debt pitfalls
What is Business Debt Management?
Business debt management is a complex subject requiring professional support and expert guidance. As Licensed Insolvency Practitioners we are highly experienced in assisting a diverse range of businesses debt solutions in this matter; from limited companies and partnerships to sole traders.
We can also provide individual debt management advice if required.
It is often the case that clients have already addressed the underlying causes of business debt but have been unable to regain profitability quickly enough. These are circumstances that we are used to dealing with and can offer a number of sensible options.
If your business is struggling under a mounting burden of debt, with increasing pressure from trade suppliers, HMRC or other creditors, it is essential that you seek expert help without further delay. Whatever the cause of your business debt problems, FA Simms & Partners can help by offering customised advice specific to your circumstances. Together we can develop an appropriate strategy to bring the pressure of debt to an end and move the business forwards in a positive light.
Outside of informal negotiation a business rescue process such as a Company Voluntary Arrangement can help avoid full closure by restructuring your company and your creditor payments. Using a Pre-Pack Administration to start again as a Phoenix company might be another option worth exploring.
Although liquidation is an effective and straightforward way of closing a company if you cannot pay your debts, there are some alternatives that will enable you to continue trading – as long as you genuinely believe that your current financial problems are temporary.
Underlying much of this is the need for the management of a business to have regained confidence in the business. Our experience can help with this.
But don’t discount Liquidation to enable a fresh start…
Company closure in the form of liquidation may well be the best – or indeed only – solution for the successful management of your business debt. The sole purpose of liquidating a company is to use its assets to pay back as much creditor debt as possible before it is closed down.
These company assets can be bought by a new company and allow a business to re-start and build the business back to profitability.
The use of a Creditors’ Voluntary Liquidation to manage a fresh start for the business in a new company is sometimes the best option.
Two main options exist:
How FA Simms & Partners can help
Call us today and one of our experienced, friendly advisors will explain your options clearly and simply, providing you with free, no obligation advice. We are not here to judge your past actions, but to understand the current position of your business and to work with you in the management of your debt.