Insolvency is a very sensitive area for many directors and rightly so. For a lot of directors their company has emotional ties and simply shutting it down at the drop of a hat can seem drastic. Even having to consider some sort of rescue package can seem bit much for some directors. When you spend years building up a business, often investing your own personal money and time into making sure that it becomes a success, it is only natural that you have an emotional connection with the project.
Even though it may seem difficult to consider any insolvency solution, it is always best to find out as much as you can about the insolvency processes well before you actually need them. An example of this would be getting the necessary information on a voluntary liquidation solution such as a creditors’ voluntary liquidation as opposed to leaving it so late that one of your company’s creditors is petitioning for a winding up petition to force the company into liquidation. When this happens the official receiver is appointed by the secretary of state and instructed to get the best return for the company’s creditors and investigate the directors. The intention of the investigation is finding out why the company has been put into compulsory liquidation as opposed to going through the preferred route using a voluntary liquidation tool.
With this in mind would you rather be ‘in the know’ or ignorant about insolvency? Knowledge really is power and knowing how to use it is just as important. We don’t believe that there is ever a ‘perfect’ time to carry out a insolvency solution, however, the earlier you address the issue the better. Don’t get too hung up on specific timing, just get in touch with a professional insolvency consultant as soon as you feel concerned about your cash-flow problems.
To have an informal chat with one of our friendly insolvency consultants please contact us on 08000 746 757 and see how we can help you. All of the advice that we provide is completely free of charge so what have you got to lose?