When you’re experiencing financial difficulties, it may be difficult to know where to turn. Many directors turn to the internet to seek a way out of their situation, but the advice on the web is sometimes conflicting and complicated in a time where you need simplicity and straight answers.
You may wish to speak with your accountant or financial adviser, but of course that comes with costs. If you do so, ensure they understand the subject completely and have the relevant professional accreditation.
Here at Company Debt, our remit is to provide clear, accurate information and debt advice for stressed directors across the UK. We are also here to offer free insolvency solutions tailored to your situation, always without charge for the first consultation. That consultation could happen right now on live chat, if you don’t wish to speak.
Where to Find Free Insolvency Advice for Your Business?
We offer a free, entirely confidential business debt advice by phone, live chat or email to any director experiencing financial difficulties and potential insolvency.
Our typical client is a stressed director who is facing creditor pressure and unsure where to turn. Whether it’s late VAT, threatening letters due to unpaid bills, or a potential compulsory liquidation via a Winding up Petition, our expertise is to;
- Offer clear, practical advice with no jargon
- Step in to deal with creditors and remove the stress from your shoulders
- Suggest practical solutions towards with business rescue or liquidation, depending on your circumstances
Just to explain we don’t offer personal insolvency solutions for sole traders, or bankruptcy. Our clients are typically the director of a limited company. I
Business Insolvency Advice from Debt Charities
Business Debtline was set up by the Money Advice Trust, which was founded in 1991 with governmental support. Employing almost 200 staff, the Trust has founded Business Debtline, as well as the National Debtline and the Wiseradviser training program.
Launched in 1992, Business Debtline was launched originally in the Birmingham area but has expanded to cover the entire UK, with a focus on debt advice for micro businesses.
As a first point of contact, and for the right type of business, they can be very useful indeed. It’s worth mentioning that you will still need to use an insolvency practitioner if your company has reached that situation.
What About Advice from Licensed Insolvency Practitioners?
Insolvency practitioners are generally accountants who have gone on to received further training and gain accreditation for the specialist field of insolvency – how to help businesses with creditor pressure and then either rescue them or close them down. They are bound by a series of laws around insolvency in the UK, largely based on the Insolvency Act 1986.
Speaking with a licensed insolvency practitioner means you are speaking with someone with proven, practical experience in working directly with insolvent businesses. As well as a rigorous understanding of the law, they will have the experience and insight to help you as quickly as possible, via the most effective solution.
Insolvency practitioners in the UK must be licensed and accredited by a body recognised by the Insolvency Service.
If your company is actually insolvent, you will have no choice but to use one at some stage anyway. The law requires insolvent companies to be managed by IP’s. Their skills are in liquidating assets to repay creditors, as well as company rescue mechanisms such as administration.
What Does Insolvency Mean in Business?
If you can no longer pay your bills it may be you’ve reached the state if insolvency. If your debts add up to an amount greater than your corporate assets, you have a legal requirement to cease trading and begin to address the concerns of creditors.
Use our free insolvency test tool to get a clear answer in just a few clics.
You would do so by making contact with an insolvency practitioner such as ourselves for a chat about your situation.
What Advice Can Company Debt Offer?
As one of the most experienced insolvency practitioners in the UK, we’ve helped 1000’s of directors find positive solutions to debt.
Firstly we’ll spend time understanding your situation. What are your debts and liabilities? Are creditors putting pressure on you? Could your business be restructured and turned around?
Based on the answers to these questions, we’ll plan the right strategy to minimise your stress and give you the best possible outcome.
Strategies may include a company voluntary arrangement, which is a structured repayment plan with creditors for a proportion of the debt.
Or perhapsa voluntary liquidation, which mean formally closing down the company. after which you’ll be free to take on more employment or another directorship.
Insolvency vs Administration
We are often asked by directors whether administration is an appropriate choice for their limited company.
Administration is a corporate rescue mechanism attempted for larger companies when it’s deemed that the company remains viable, and that a better return for creditors may lie with keeping the company running.
Even with an administration, the primary focus is always the best return for creditors owed money by the limited company.
If this is an option for your situation, we will always advise accordingly.