5 Signs Your Company May Need Debt Advice

5 Signs Your Company May Need Debt Advice

June 11, 2014 by vickyc

One of the biggest questions people ask me is what are the most common signs of insolvency I see from a director’s point of view. Although a wide subject I’ve narrowed it down to what I believe are the real kick-starters of most insolvencies. If you start noticing that any of these are affecting your company it’s probably time for us to have a talk about starting to save your company and not waiting six months instead to have a chat about shutting it down.

  1. Directors Supporting the Company

 Probably the biggest sign I know of and an insolvency classic. If you are a director and are using personal funds to continue trading, whether that’s by using your house as collateral for finance, using your personal credit card to fund business activities or not taking a wage at the end of the month it’s best to start thinking about getting some real advice. Involving your own finances can mean an insolvent business might take you down with it.

  1. Making Payment Agreements

 If the business is extending its terms with suppliers, increasing creditor days or having to make payment agreements it’s often a sign that the business might need some breathing room before things get worse.

  1. Letters from HMRC

 Unfortunately HMRC do not go away, no matter how much you hide from them. The letters will get worse and deeper proceedings will occur if ignored. Talk to someone who deals with HMRC daily to explain what the options are.

  1. Unable to Pay Employee Wages

 The company being unable to pay employees or your personal finances getting involved to pay employees is another sure fire sign that the business is insolvent.

  1. Knowing Bailiffs by Name

 If you are on first name terms or have had to research how to stop bailiffs entering your premises probably means it’s too late. Much like HMRC, even if you turn the lights off and hide under your desk they’ll still come back, talk to an expert about how to legally protect your assets in such scenarios.

 If you need help contact us.

Sandra

Filed Under: Uncategorized

We don’t need personal or company details to answer initial questions on your situation:

Call 03300 563 600

Recent Posts