Business in financial difficulty
In business it’s easy to get help and support when things are going well. The bank manager wants to take you out for lunch, suppliers call you regularly to make sure everything’s going OK and happy customers readily order more and make referrals which result in additional sales for your business.
When the going gets tough however things can be very difficult and getting the right advice and support can be challenging. Talking to a well qualified, experienced accountant could be your salvation.
Actions to save your business
If your company is in serious financial difficulties you probably have a much better chance of saving it than you think. However you must act quickly and take advice.
If you think you can trade out of the problem, here is how we can help
- Preparation of financial forecasts with cash flows
- Create or review cash flows prior to obtaining or rearranging additional finance
- Review key business assets and consider their availability to creditors
- Determine secured creditors and amounts owed to them along with nature of security prior to deciding what course of action to take
If you can’t trade out of it and you will run out of cash, here’s how we can help:
- Preparation of simple statement of affairs
- Determine parties with security and enforceability
- Review asset values and obtain external valuation on break up basis
- Carefully plan for either liquidation or preferably pre pack administration. This is normally the last best chance of securing the business going forwards.
- Prepare financial plan for newco
- Agree a plan and implement it.
If you are aware of the provisions of company law to protect your distressed business you greatly increase the likelihood of salvaging the trade and assets in a new entity going forward. We work with highly proactive and commercial business partners in commercial law and administration and liquidation to put the directors first.
At Parker Chartered Accountants we deal with a steady stream of pre insolvency enquiries. The latest involved a Pre Pack Administration with some additional bank negotiations. Over 50 jobs were saved and the trade continued.
If your business is struggling call 0121 764 5161 to discuss how to salvage the valuable parts of the trade, save jobs and carry on trading in a new entity going forward.
