Where to Find Pre-Insolvency Advice
In the case of corporate insolvency, prevention is undoubtedly better than the cure. The earlier you seek advice, the more options will be available to you and the greater the chances of saving your business. Company directors are often reluctant to seek the advice of a company debt professional until there is an immediate crisis, but by this point, many of the more subtle rescue methods are no longer available. Once a business becomes insolvent, it must act to maximise the interests of its creditors and this can make life more difficult.
What is Pre-insolvency Advice?
Pre-insolvency advice is assistance struggling businesses can seek from registered insolvency professionals to help get their business back on track. This will typically be sought when a company director realises the business is in trouble, for example, if it is experiencing cash-flow problems or is struggling to pay HMRC, but before it becomes technically insolvent i.e. when it is unable to meet its liabilities when they become due.
When providing pre-insolvency advice, a turnaround practitioner or company rescue expert will take the time to understand the circumstances the business finds itself and consider the suitability of a range of rescue options. That’ll include strategies like:
- Reworking existing finance agreements
- Improving the credit control and collections process
- Restructuring the business to reduce costs
- Returning the business to its core activities
- Exploring alternative finance streams
- Maximising a company’s assets to increase its turnover
In most cases, using one of these strategies in isolation or a combination of the above will be enough to get the business back on track. If not, a formal agreement with the company’s creditors, like a Company Voluntary Arrangement or even selling a stake in the business could be considered.
Finding the best Pre-insolvency Advice
All too often, companies are pushed towards formal insolvency procedures when they aren’t necessarily the best solution to a particular situation. When you’re looking for pre-insolvency advice, going straight to an insolvency practitioner can result in this approach. Instead, you should seek advice from a turnaround practitioner or company rescue expert who specialises in rescuing businesses without the use of an insolvency procedure.
You should approach an advisor who is independent, impartial and able to advise on all the different options available. They will help you consider the strengths and weaknesses of each. We would also advise you to speak to a number of company rescue experts, read testimonials and speak to other companies that have used their services before you make your decision.
The good news is that the UK insolvency profession is one of the best anywhere in the world, so there is plenty of expert assistance out there.
Looking for Expert Pre-insolvency Advice?
If your business is experiencing cash-flow problems, approaching insolvency or dealing with creditor pressure, please give us a call on 08000 746 757 or email: email@example.com for a free, confidential, no-obligation discussion of your circumstances.