Please visit http://www.companyrescue.co.uk/ for confidential help and insolvency advice or email keiths@ksagroup.co.uk

Monday, 22 March 2010

My company cashflow is very poor: So how do I know if my company is insolvent?

If my company has a cashflow problem is it insolvent?

This is by far the most common question that we hear every day. Most people don't understand the issues and are surprised when they read and learn all the insolvency tests.

Most people assume that a negative or insolvent balance sheet automatically means the company IS INSOLVENT. Many assume that a positive or solvent balance sheet means the company IS SOLVENT. Both assumptions may be wrong.

Cashflow is a fundamental test independent of the balance sheet issues.

For a simple to follow guide see this page.

http://www.companyrescue.co.uk/company-rescue/guides/insolvency-test

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Many thanks for your comments. If you have a private business problem and you want advice give us a call on 0800 9700 539 or email me at keiths@companyrescue.co.uk. If you are a professional advisor with a troubled client, please suggest they visit www.companyrescue.co.uk or contact me as above.

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