Rescue, Recovery, and Closure Options for Farmers and Agriculture workers
Several farm proprietors and agricultural labourers currently face financial issues, mainly due to factors beyond their control.
If your farming business faces financial trouble, seek guidance from an insolvency specialist for professional advice. Being insolvent doesn’t mean you lack options.
Our specialists at Vanguard Insolvency possess extensive experience in the farming and agriculture sectors. We offer customised advice and support, enabling you to grasp your options and enhancing your chances of recovery.
Unlocking effective processes to close my farm or agriculture business
If your farm is facing difficulties with overwhelming financial strain and increasing operational hurdles, it might be necessary to explore closing the business before the situation deteriorates further.
As a company director, you bear specific legal duties and obligations to your creditors once you recognise that the business is trading while insolvent.
Closing your farm can be accomplished through a formal liquidation process called a Creditors’ Voluntary Liquidation – or CVL. A licensed insolvency practitioner guides this process, taking control of the company, addressing outstanding creditors, liquidating assets, and orderly winding up the business.
How can you rescue your farms and agriculture businesses?
If your farm remains potentially viable, various company rescue and recovery procedures can be explored to potentially reverse the business’s fortunes. Given the nature of farming, valuable assets are often available that can aid in the recovery of farms and agricultural businesses.
The worth of hard assets like vehicles, equipment, and machinery can be utilised to bring in new funding for the business, initiating a recovery plan.
A frequently employed option among our farming clients is asset-based lending, well-suited to the needs of the farming industry.
Assets listed on the balance sheet typically carry significant value and can serve as security proof for borrowing. Given the farming industry’s reliance on costly machinery for daily operations, farming businesses are well-suited for this type of borrowing.
Releasing the value of these assets can work here as a lump sum of cash which alleviates cash flow issues or retire existing debt, becoming burdensome to service.
Here’s why this lending option could prove advantageous for you:
- Loan repayments are entirely tax deductible, enhancing cost-efficiency in borrowing.
- Under a sale and leaseback agreement, you retain the ability to use the asset(s) as usual.
- With a set interest rate at loan initiation, you can budget with greater certainty.
- Your asset’s value is maximised before it undergoes significant depreciation.
A vital cash injection of this nature could potentially rescue your business.
With the survival of your business at risk, taking swift action is crucial. We offer same-day consultations to promptly assess your financial status.
Our extensive network comprises over 100 offices, ensuring immediate assistance and advice, whether over the phone or through a face-to-face meeting on the same day.