Company debt advice for haulage companies

To safeguard your haulage business from increasing expenses and significant industry hurdles, it’s crucial to grasp formal insolvency possibilities. 

Learn about options like Company Voluntary Arrangement (CVA), Company Administration, or Creditors’ Voluntary Liquidation (CVL) to rescue or wind up your transport business.

An ultimate guide to rescue, recovery, and closure options for haulage and transport companies

The logistics sector in the UK adds more than £75 billion to the economy, with 2 million individuals employed. Despite experiencing remarkable growth, companies face escalating liabilities like vehicle lease and hire purchase bills, along with repair, maintenance, and fuel expenses.

The persistent shortage of HGV drivers has resulted in higher staffing expenses. The industry witnesses a significant surge in staff salaries as workers, encouraged by the demand for their skills, seek higher wages or consider switching to firms offering better compensation. 

We’ve heard from small-to-medium-sized haulage companies grappling with the challenge of affording staff expenses, leading to stress and disruptions in their operations.

How do you close your haulage company via liquidation?

If your business finds itself in an insolvent position, you might be considering shutting down your haulage business and exploring options for company liquidation.

A Creditors’ Voluntary Liquidation (CVL) is a formal insolvency process where the director of the haulage company voluntarily closes the business. Conducted by a licensed insolvency practitioner, this option is suitable for haulage businesses with no foreseeable prospects of recovery.

In a CVL, funds are raised to settle creditor debts by selling assets, and any remaining debt is usually forgiven, leading to the closure of the business.

If your haulage company lacks cash but possesses valuable assets, company administration could be appropriate for your insolvent or potentially insolvent business. Given the high value of assets like trucks and lorries in a haulage business, opting for administration might be a viable choice if you aim to salvage your company.

A licensed insolvency practitioner can assist in identifying the best solution for your business, whether it’s facilitating a smooth exit or carrying out a restructuring process to strengthen operations and secure alternative finance options.

Exploring effective options to rescue your Haulage business? 

If your haulage company is facing financial challenges because of increasing costs and cash flow issues, there’s still a chance to rescue your business. Depending on the root cause of your company’s difficulties, you might need a cash injection to address the income gap it’s encountering.

We have an in-house team of commercial finance experts who have access to a competitive selection of lending products, including invoice finance, asset finance, commercial property loans, and industry-specific finance options.

An alternative restructuring approach for haulage companies involves implementing a Company Voluntary Arrangement (CVA). A CVA is a formal insolvency procedure enabling you to restructure your debts with creditors. Negotiating payments into manageable instalments can offer valuable flexibility and breathing room for your haulage company.

While a CVA presents an attractive option, not every haulage company will meet the criteria for one, as it can only be initiated based on the recommendation of a licensed insolvency practitioner.

If your business is facing intense creditor pressure and threats of winding up petitions, placing your haulage business into company administration can shield it from legal actions that might lead to compulsory winding up.

A licensed insolvency practitioner, serving as the company administrator, will assume control over the business’s affairs. The administrator’s role is to safeguard creditors’ positions from deteriorating further and to liquidate company assets to repay creditors.

If your business has exhausted the possibility of a rescue, making an orderly exit through a Creditors’ Voluntary Liquidation can allow for outstanding affairs with creditors to be settled before your company is wound down and removed from the register held at Companies House.

If your business cannot be rescued, this route might be the optimal solution for all parties concerned. This procedure involves formally deciding to wind up your haulage business. Following notices to shareholders and creditors, the liquidation process will commence.

Our licensed insolvency practitioners will conduct a thorough review to ascertain if it’s feasible to rescue your haulage company through a restructuring strategy or if company liquidation is the most suitable course of action. Additionally, we can facilitate access to emergency funding or private equity finance through reputable market leaders.

How Vanguard Insolvency can support your haulage company

We extend a complimentary consultation to haulage business owners nationwide, providing urgent business restructuring and recovery advice. Given the evolving market dynamics, adapting your services is crucial for maintaining a steady income. 

The sooner you reach out to Vanguard Insolvency, the broader the range of options available to you.