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

Monday, 19 May 2014

Is your company insolvent?

Do you know if your company is solvent or insolvent?

Some warning signs are harder to spot that others, so it's best to look at all areas of the business to ensure you're prepared if things start to get out of control.

Use these three tests:

Cashflow test - can the business pay debts when they fall due? VAT, PAYE, corporation tax etc...

Balance sheet test -  Does the business owe more than it actually owns? Do liabilities outweigh assets?

Legal action test - Have you been issued or threatened with legal actions, like a Winding up Petition, CCJs or distraint?

If any of the above apply to your business, it's likely that it is insolvent. You must act quickly to avoid the situation getting worse but don't panic, there are ways to turn your business around. For example, a Time to Pay deal with HMRC or a Company Voluntary Arrangement may be the best solution.

If you have been issued with serious legal actions, administration can safe-guard the business. You may want potential buyers and those looking to provide investment to purchase the business and assets while in administration too.

Whatever your situation, be aware of the facts and act quickly to minimise risk and personal liability. If you believe your company is insolvent, you can call us on 0800 9700539 for expert advice on turnaround and insolvency solutions.


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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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