Early action improves chance of recovery

With inflation at its highest in 30 years, problems with supply chains and labour shortages, businesses are again facing a difficult and unpredictable financial climate.

The fear of insolvency is very real.

However, making the decision to talk about the problem is also something that many directors and business owners fear.

We recognise that our profession is often seen as all doom and gloom and people find the prospect of speaking to an insolvency practitioner daunting.

However, we strive to provide a more positive, understanding and empathetic service, reassuring you that there are solutions available and the sooner you seek advice and support, the greater the chance of survival.

Business confidence in the UK has slumped to a post-pandemic low and many economists warn that a recession is imminent.

As pressures grow on their businesses, directors need to be aware of the warning signs and act as soon as any of these are identified:

Difficulty in paying essential bills – Unable to pay staff wages, HMRC, rent or suppliers.

Overdraft at limit - Banks refusing to increase overdraft facilities to help cashflow.

Creditor pressure – Increased demands and threat of legal action from creditors.

Poor cashflow – Considering commercial finance or personal savings to find emergency cash to continue trading.

Loss of major contracts - Resulting in cashflow problems.

Business owners and company directors should be looking forward and taking proactive measures to help their businesses, which may involve consulting an insolvency practitioner.

Running a company is tough; cash rarely flows in a steady stream and the difference between those that survive and those that fail is often determined by how early they seek help and advice.