Try Our Insolvency Test
If you would like to have our interactive visual insolvency test on your website please email us on firstname.lastname@example.org and address the email to Tony Smith. We would be happy for you to have your own version of this free tool that we have built on your website for your visitors to use, under your brand.
The insolvency test refers to three simple checks to determine the insolvency status of a business, or individual. In this case, we have focused on the insolvency status of a business.
The three checks that the insolvency test covers are as follows:
- The cash-flow test.
- The balance sheet test.
- The legal action test.
The cash-flow test for insolvency
The cash-flow test is designed to find out whether a business can pay its bills when they fall due. If your business cannot pay its bills on time, the chances are that it is mostly likely insolvent.
The balance sheet test
This part of the test aims to determine whether the value of the business’ cash at the bank, as well as the total value of assets combined, are more, or less in value than the total value of liabilities that the business has. If the total value of assets and cash combined has a value that is less than the total value of liabilities under the business name, chances are, it is insolvent.
The legal action test
The final part of the test aims to highlight whether any legal action has been taken out against the business for any debt to the value of £750 or more. If your business has had legal action set against it of this value of debt or greater, your business may be insolvent.
Take the insolvency test now and check your insolvency status.
For more information on what to do if you business is insolvent contact us on 08000 746 757, or you can email us on email@example.com or use the live chat feature.