If your business is struggling financially, insolvency practitioners can help you navigate your challenges and find a solution. Read on to find out how...
In times of financial uncertainty, businesses of all sizes may find themselves facing difficult decisions. Mounting debts, cash flow struggles, and increasing pressure from creditors can leave directors feeling overwhelmed and unsure of their options. This is where insolvency advisory services come into play - offering professional guidance when it’s needed most.
But what exactly is an insolvency practitioner, and how can they help rescue or restructure your business? In this blog, we explore the vital role they play in business recovery and what to expect when seeking their support.
Who Are Insolvency Practitioners?
Insolvency practitioners are highly qualified professionals licensed to act in relation to insolvent individuals or businesses. In the UK, they must be authorised by a recognised professional body and often come from backgrounds in accountancy or law.
At their core, insolvency practitioners help businesses and individuals navigate the complex landscape of insolvency, offering clear, regulated pathways to manage or resolve debt. This includes overseeing formal insolvency procedures such as administration, liquidation, or company voluntary arrangements (CVAs), as well as providing restructuring and business rescue advice.
What Do Insolvency Advisory Services Involve?
Insolvency advisory services offer more than just support in crisis. At McAlister & Co, we believe in early intervention - supporting businesses before insolvency becomes inevitable.
This proactive approach can include assessing financial health and cash flow, advising on legal obligations and risks to directors, helping to negotiate with creditors, creating business turnaround plans, and recommending restructuring options
An insolvency practitioner doesn’t just “close companies down” - far from it. Rather, they are trained to explore all options available to protect viable businesses and safeguard the interests of creditors, employees, and directors alike.
When Should You Contact an Insolvency Practitioner?
Recognising the warning signs of financial distress is key. If your business is struggling to pay bills on time, facing creditor pressure, or relying heavily on short-term borrowing, it’s time to seek professional advice.
At this stage, contacting an insolvency practitioner for insolvency advisory services could make all the difference. After all, the earlier you act, the more options are available to restructure or recover.
How Can an Insolvency Practitioner Help Your Business?
1. Providing a Clear Financial Assessment
An insolvency practitioner will begin by thoroughly reviewing your company’s financial position. They’ll assess debts, liabilities, and cash flow and help you understand your legal duties as a director, especially if your company is nearing insolvency.
2. Offering Tailored Business Rescue Plans
If your business is viable, the insolvency practitioner will work with you to create a tailored rescue plan. This could involve restructuring operations, reducing costs, or refinancing through alternative lenders. Where appropriate, informal negotiations with creditors or HMRC may be possible to improve your position.
3. Guiding You Through Formal Insolvency Procedures
If recovery isn’t viable, a formal insolvency process may be necessary. Insolvency practitioners are authorised to oversee and implement these procedures with sensitivity, professionalism, and in full compliance with UK law. Here are the most common options available:
Company Voluntary Arrangements (CVA)
A CVA is a formal agreement between a company and its creditors, allowing debts to be repaid over an agreed period - usually at a reduced rate - while the company continues to trade. This option is often suitable for businesses that are fundamentally viable but need breathing space to recover.
CVAs can be a powerful tool to preserve jobs, maintain key contracts, and restore confidence among stakeholders. The process is overseen by a licensed insolvency practitioner who ensures fair treatment of all parties and the proper implementation of the repayment plan.
Administration
If your company is under significant threat from legal action or creditor pressure, entering administration can provide immediate legal protection through a moratorium. During this time, an insolvency practitioner (as Administrator) takes control of the business with the goal of rescuing the company, achieving a better return for creditors, or selling the business as a going concern.
Administration can be especially useful for companies facing short-term crises but which have strong long-term potential. It’s a structured process that provides space to assess the best outcome - whether through restructuring, asset sales, or negotiated settlements.
Pre-pack Administration
A pre-pack administration is a specific type of administration where a sale of the business and its assets is arranged before the appointment of the Administrator and completed shortly afterwards. This process can preserve the value of a business by allowing for a seamless transition to a new company - often involving the same directors - without the delays or damage that traditional administration might cause.
Pre-packs are tightly regulated to ensure transparency and fairness, particularly when there is a sale to connected parties. For the right businesses, a pre-pack can provide continuity, safeguard jobs, and preserve relationships with suppliers and customers.
Creditors’ Voluntary Liquidation (CVL)
When recovery is not an option and the company cannot pay its debts, a CVL allows directors to voluntarily wind up the business in a structured and dignified way. This is a director-led process, meaning you remain in control of the initial steps and can choose your insolvency practitioner to manage the liquidation.
The appointed practitioner will handle the closure of the company, realise its assets, and distribute funds to creditors in accordance with legal priorities. Importantly, they will also ensure that your conduct as a director is reported to the Insolvency Service - something that is mandatory in all insolvency cases but handled professionally and fairly.
A CVL helps directors draw a line under financial difficulties and, in many cases, provides an opportunity to start again in future.
Why Use a Licensed Practitioner?
Insolvency is a highly regulated area, and only licensed practitioners can carry out formal insolvency processes. Unregulated advice can be misleading - or even harmful. Choosing a licensed firm like McAlister & Co ensures that you're receiving trustworthy, transparent, and expert guidance.
Our team is fully qualified and experienced in handling complex insolvency cases, from corporate restructures to distressed debt negotiations. We pride ourselves on being approachable and solutions-focused, helping business owners regain control with empathy and clarity.
Supporting You Every Step of the Way
At McAlister & Co, we understand how isolating and stressful it can be to deal with financial difficulties. That’s why our insolvency advisory services are designed to give you the tools, knowledge, and support to make informed decisions - whether you’re looking to rescue your business or close down with dignity.
We believe that insolvency isn’t the end - it’s a chance for a fresh start. If your business is experiencing financial pressure, don’t wait. Speak to our expert team today about how our insolvency advisory services can help you move forward. Contact us now or read more about business insolvency options here.