We Rescue Directors from Business Debt Situations
Running a business can be a challenging time for anyone and if you are under pressure and burdened with business debt, you may find it difficult to decide on a clear path to get out of your situation fast. We have helped hundreds of company directors with their business debt situations and our number one priority is protecting you with due care to creditors. From business rescue plans and solutions, personal guarantee issues, cash-flow problems, overdrawn directors’ loan accounts and company liquidation; we can help you resolve your situation.
Problems Paying Bills On-Time?
Problems paying bills on time can be one of the first warning signs of insolvency. Almost all businesses experience cash-flow problems at some stage. If you have been considering your options for some time and you now want to do something about your situation then we are perfectly placed to support you. It will not cost you anything to find out your options from us. Whilst we must consider the creditors, our number one priority is protecting you, the company director and we will guide you throughout the entire process, from start to finish.
Struggling to Trade-On?
It may feel like you have exhausted every option to keep your business running, but we could add value by providing you with a new solution to help your business thrive once more. Often, directors take on too much at once and with only so much of you to go around, you could be missing some important points which may lead to an accumulation of debt. If you have a viable business, but the historical debts are hindering your progress please get in touch as soon as you can. The situation may get worse, the longer you leave it. We have many options to help directors resolve their business debt situations, ensuring you recover in the best possible shape. So if you will benefit from free advice on your situation, get in touch!
Liquidation & Winding Up Petition Support
In some cases it just wasn’t meant to be and the best option available may be to put your company into liquidation. This doesn’t necessarily mean the end for your business, in the right circumstances you may be able to start planning for your future sooner than you think, prior to liquidation. However, if you have had enough we can put your company into liquidation and you can rest-easy knowing that our advice is confidential; the situation will be handled sensitively and we will be working with your best interests in mind. Many directors that we have helped said that putting their company into liquidation was the best decision they made and have gone on to be successful in future ventures.
What Sets Us Apart?
What is the Jameson Smith & Co difference? Our number one priority is protecting you and your personal assets, having due care for the creditors, but nevertheless we place you at centre stage. We believe that the quality of advice and solutions and our ability to help directors get out of potentially stressful and threatening situations is some of the very best within our industry, but don’t take our word for it, read some of our testimonials from people in similar situations to yourself. Some of our previous clients have even offered to talk to new prospective clients to further testify to our quality of service, ethos and agenda.
Free Business Debt Help
Get free advice regarding your business debt problems
Knowing who to turn to, or who you can trust when your business needs help can be challenging. At Jameson Smith & Co Ltd we pride ourselves on providing you with some of the very best business debt help available here in the UK and it will not cost you anything for our business debt advice. Find out your options at no cost when considering the business debt solutions available that can help you and your business today.
Directors will often feel stressed and may have an element of stigma attached to seeking business debt help from anyone and we understand the types of situations that you may currently be going through in great detail. Take the time to read some of our testimonials. All of our testimonials can be authenticated on request and have been written by directors and business owners just like you.
So if you are in any doubt about what to do with your business debt problems, give us a call on 08000 746 757. You will get your options and confidential debt advice for you and your company, free of charge. If you would like to have a confidential chat with a member of our team then please call Mike on 07912 344 394.
I cannot thank mike and his team enough for helping us through the most difficult time of our lives. Due to sudden ill health of my husband we had to close our business which left many outstanding debts. Jameson Smith & Co guided and supported us through this process brilliantly! If you have any financial business concerns phone these guys…… you will not regret it!
The company had problems with HMRC and I found your website and contacted your company. I’m very grateful to you, you certainly helped clarifying a lot of things and your kindness is much appreciated. I found you very easy to talk to which is a great help when you are worrying and I am pleased to say we were charged nothing at all.
With the high street retail scene becoming more and more desperate I was forced to liquidate my retail company that I had lovingly grown over the past 7 years. The fear of the unknown soon manifested into a very stressful situation for my family and staff as I simply did not understand what the correct process was in closing down my company. The internet was full of horror stories so the relief was immeasurable to have a knowledgeable and leading contact in Mike and his team. From the initial contact until completion I received step-by-step support in dealing with creditors and debtors, guidance regarding my stock, how to deal with staff and supplier agreements. I would highly recommend taking the stress out of this situation by using Jameson Smith & Co, they are professional, act very quickly and were always available regardless of how minor or complex the issues and queries I had. I simply can’t thank you all enough!
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FEELING CONFUSED? - WE CAN RESOLVE YOUR BUSINESS DEBT PROBLEMS
- What is a CVA?
- What is a CVL?
- What is a Pre-Pack?
- What is Administration?
- What is Insolvency?
- Is this the end?
- Directors Loan Advice?
- Help with Tax Debts?
- What do you charge?
- Personal Guarantee?
- Winding up Petition?
- Statutory Demand?
A CVA, otherwise known as a company voluntary arrangement, allows you to protect your company against legal action, as with administration, but with the purpose of creating a legally binding payment plan with your company’s creditors. The cva is tailored around your company’s cash-flow so that your company’s debts can be repaid, either in part, or in full over a maximum of five years. A cva is initiated by you (the director), not the creditors or shareholders.
When used correctly, a cva can provide a perfect tool to renegotiate troublesome trade agreements whilst allowing you to trade on through a financially challenging period. This solution should only be considered if you believe your company is viable, but needs some help to trade through.
A CVL is also known as a creditors voluntary liquidation. It is a solution that allows you to close your company with or without the permission of creditors and it allows the company to write off unsecured debts. This type of liquidation is initiated by you (the director), not the creditors as the name may lead you to believe. Choosing the right insolvency practitioner can be critical when considering liquidation. Ask to speak with previous clients as testament to their services before committing to any company to carry out a creditors’ voluntary liquidation.
A pre-pack can refer to pre-pack administration or pre-pack liquidation, either way, the solution involves having a future buyer lined up to purchase the more profitable parts of the business, whilst leaving the debts behind. It is important to obtain specialist help immediately if you think this may be a viable solution for your company as strict procedures must be followed if you, as a connected person, are considering purchasing your company’s assets. Nevertheless, if your business is generating revenue producing contracts, has sizable assets or properties, but they are under threat from serious litigation or angry creditors; a pre pack administration can provide a very powerful legal solution for your company.
Administration is a very powerful legal tool that can be used to; first, stop legal action against your company and then:
Get a better return for the creditors than would be obtained via an immediate liquidation, or rescue your company from financial difficulty as it provides you with more time allowing for a rescue strategy to be put in place for everyone's benefit.
There are two key tests/questions that apply to companies when defining whether it is insolvent or not and they are:
- The cash-flow test: Can the company pay its bills when they are due?
If the answer is NO, then your company is likely to be insolvent and you should seek advice.
- The balance sheet test: Do your company’s debts outweigh the company’s assets?
If the answer is YES, then your company is likely to be insolvent and you should seek advice.
No. Insolvency does not have to spell the end for your business as there are a number of tools that we can use to secure both your future and/or your company’s future whilst protecting you fully and minimising any potential risks.
Around 70% of directors have a problem with an overdrawn directors loan account at some stage. Most commonly, the director seek advice from an accountant who tells him/her to take a minimum salary in order to keep national insurance and tax at the lowest levels and to then take dividends to supplement their income. This then causes an unpaid debt which is owed to the company. This is very acceptable tax advice until something goes wrong which could be a sharp, unexpected drop in revenues for whatever reason or a threat of a winding up petition from HMRC. The directors then become debtors (someone who owes money) to the company and any liquidator, has a duty to pursue the director to the point of bankruptcy, if the debt cannot be repaid.
In the vast majority of cases you pay us nothing at all. When an insolvency solution is required such as a cva, administration or liquidation - we get paid for all of these by completing the field work for the insolvency practitioners. This relationship benefits you in more than one way: As you may already know, once an insolvency practitioner is engaged by your company they are duty bound to work for the creditors. So once engaged, an insolvency practitioner cannot address any potential personal implications that may be directly caused by the insolvency process as it would be a direct conflict of interests for them to do so. Jameson Smith & Co puts your protection first, whilst working with the insolvency practitioners so you have full peace of mind.
A directors' personal guarantee is essentially a promissory note to pay an organisation regardless of your company failing or going into liquidation. At some stage you may have signed an agreement with the bank or another trade creditor, making you personally liable for a specific debt. Once you realise that your company is heading towards insolvency you should seek advice on how to tackle this situation immediately if you are in any doubt about what to do.
Banks will often support personal guarantees with a charge on the family home and, or a debenture usually a fixed and, or floating on the company assets.
We specialise in helping directors address their personal guarantees and providing solutions to allow the directors to exit the situation in the best financial shape possible.
Read our page on directors' personal guarantees for more information on how we can help you.
A winding up petition is the application for a forced/compulsory liquidation of a limited company or partnership. This is usually initiated by a creditor (person/business that your company owes money to). Winding up petitions should never be ignored. There can be serious implications if communication with the relevant creditor or immediate action is neglected at this stage.
A statutory demand is a documented written request, usually sent from a creditor for payment of a debt that is owed. You would have 18 days to negotiate a settlement or ask the court to set-aside (dismiss) the demand. If no settlement is made after 18 days from receiving the statutory demand you are given a further 3 days to pay in full. This is a very serious document and should not be ignored in any circumstances. After the 21 day period has lapsed and if there is no response to the document, the creditor can then petition to court for a winding up order for a debt as little as ￡750.
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