Company struggling due to flood damage? Get help and advice today
What happens when flood damage causes a company to become insolvent? Businesses in flood-prone areas face ongoing challenges with the increasing severity of weather conditions. The relentless storms in late 2015 caused significant devastation in the north, leading to insolvency for some businesses due to unrecoverable losses. While business insurance policies provide some protection, many […]
Insolvency advice: a guide for limited company directors
When should I seek insolvency advice and where can I get it from? If concerns arise that your company faces challenges in meeting its debts, indicating technical insolvency, seeking prompt professional advice is crucial. However, identifying a reliable source for such guidance can be challenging. This guide addresses when to seek insolvency advice and offers […]
Help and advice for charities facing insolvency
How are charities treated differently to limited companies in a formal insolvency procedure? While many charities share a structure similar to limited companies, there are various types of charity formations. However, the structure of a charity can limit the available insolvency processes in cases of financial difficulties. The recent closure of the Kids Company charity, […]
What is a Statement of Affairs in corporate insolvency proceedings?
What’s the purpose of the SOA and who prepares it? A Statement of Affairs (SOA) is a crucial document to be prepared during the initial phases of formal insolvency processes, such as Company Voluntary Arrangement (CVA), Administration, or Liquidation. It offers a snapshot of the financial status of a struggling company, presenting creditors (those owed […]
Understanding business assets and how they are affected by insolvency
What is deemed a business asset in an insolvency procedure? An asset is essentially a resource or valuable item owned by a company. For an average business, assets usually include:
What happens to an overdrawn director’s loan if I move abroad?
Will the director’s loan be written off? An overdrawn director’s loan account happens when a director withdraws funds from a company, not as salary or dividend, exceeding their invested capital. Essentially, they provide themselves with a personal loan from the company. Director’s loans are entirely legal and quite common, but repayment is necessary. The overdrawn […]
How to Test for Company Insolvency: Cash Flow and Balance Sheet Tests
Insolvency and solvency tests for businesses There are two main ways to check if a company is financially stable: the balance sheet test and the cash flow test. The balance sheet test looks at what a company owns and what it owes. If the debts are more than the assets, the company is a “balance […]
TUPE and Insolvency – A Guide for Employers and Employees
What happens to TUPE employees when a business becomes insolvent? TUPE regulations safeguard employee contracts during a change of business ownership. In insolvency cases, an employer’s responsibilities towards TUPE employees depend on whether the insolvency procedure is terminal or non-terminal. What do employers and employees need to know about TUPE and insolvency? TUPE regulations […]
Who Knows Best When Seeking Business Advice?
Should businesses consult solicitors, accountants, or insolvency practitioners? If your company faces financial issues, ignoring them won’t make them vanish. Problems tend to worsen when neglected. Prioritise seeking professional advice promptly is a crucial step for any company director. However it’s clear – you know you need advice; who to turn to for this, […]
My company is struggling financially: what are my options?
How can you save a struggling business and who can you turn to for help? All businesses experience financial ups and downs. Issues such as customers paying late, changes in demand, and the departure of important staff can have an impact. External factors like the COVID-19 pandemic, rising energy costs, and increased inflation have also […]