“Success consists of going from failure to failure without loss of enthusiasm” ~ Winston Churchill
This is another guest article from Stacey Cavanagh
There is no shortage of information readily available for individuals and families experiencing financial hardship and excessive debt problems. The options are well publicized online and offline thanks to the media.
But where do small businesses turn when they find themselves in excessive amounts of debt they simply cannot control? If your company is insolvent, by which we mean your liabilities exceed your assets and you are unable to make payments on time, the first move to make would be to get in touch with a business debtline. Doing so will enable you to discuss the options available to you with trained professionals, who can outline what each potential solution will involve and the potential consequences for your company.
Help for Struggling Businesses
Some of the possibilities they will discuss with you might include the following:
1. Recovery, either internal or external. By ‘internal’ we mean that the changes are made within the confines of the company and begin with an informal approach to your creditors to explain your situation and request a repayment plan restructure to accommodate. External recovery often means bringing in a company to act on your behalf and deal with negotiations with your creditors.
2. CVA, or a ‘Company Voluntary Arrangement,’ which is a legal agreement and permits a company to continue trading, most importantly. This is a real opportunity for a company to resolve its financial problems without having to enter liquidation.
3. Administration, a legal process in which the creditors are prevented from aggressive tactics, giving the company time to decide upon the resolution to the problems. The resolution might mean liquidation, a form of recovery plan or selling the company off.These are just three of the potential solutions to excessive and unmanageable business debt and prior to deciding upon any course of action, it is always advisable to contact a business debt line for professional advice.
This is a guest article written and sent by Stacey Cavanagh
Image by: Morning Glory
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