Discover the most common signs that your business needs debt advice from an insolvency specialist.
One of the biggest questions people ask us at McAlister & Co is what the most common signs of insolvency are from a director’s point of view. Although a wide subject, we’ve narrowed it down to what we believe are the real kick-starters of most insolvencies.
So, if you start noticing that any of these are affecting your company, it’s probably time for you to seek business debt advice.
The sooner you have a talk with an experienced insolvency about starting to save your company, the more options you will have - rather than waiting for six months instead to have a chat about closing your company down.
5 signs it's time to seek debt advice for your company
1. You’re using your own money to support the company
This is probably the biggest sign that we know of, and it’s a business insolvency classic. If you are a director and are using personal funds to continue trading, it’s definitely time to seek expert advice.
Whether you’re 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 business debt advice from an insolvency specialist.
Involving your own finances is especially risky. Ultimately, if your company does become insolvent, you’ll be highly unlikely to get your money back, and the business might even take you down with it.
2. You’re making payment agreements
Another common sign of insolvency is relying on payment agreements. If your 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.
Sound familiar? If so, then it’s time to reach out to an insolvency specialist for expert help and advice before it’s too late.
3. You’ve received letters from HMRC
Unfortunately, HMRC don’t go away - no matter how hard you try to hide from them. If you are struggling to pay money owed to HMRC, trust us: the letters will get worse and deeper proceedings will occur if they are ignored.
However, it’s not all doom and gloom. For starters, HMRC are the biggest creditor in the UK, so if you are struggling to pay them what you owe, you aren’t alone. Talk to someone who deals with HMRC daily to explain what the options are.
Alternatively, don’t miss this blog for top tips and expert advice on what to do next if you can’t pay your taxes.
4. You’re unable to pay your employees’ wages
If your company is unable to pay its employees or if you are using your personal finances in order to pay your employees, this is another sure-fire sign that the business is on the path towards insolvency.
It’s important to remain aware of your employees’ rights in an insolvency situation, including redundancy payments, unpaid holiday pay, and more. You can read about this in more detail in this blog.
If you’re worried about what will happen to your employees if your company does become insolvent, don’t miss this blog about what will happen to your staff for further help and advice.
5. You know the bailiffs by name
If you are on first name terms with bailiffs or have had to research how to stop them entering your premises, it probably means that it’s too late to avoid an insolvency situation.
Much like HMRC, even if you turn the lights off and hide under your desk, they’ll still come back. At this point, it’s important to talk to an insolvency expert about how to legally protect your assets in such scenarios and begin to make a plan about what to do next.
Seek advice from an insolvency specialist before it’s too late
We’ve said it before, and we’ll say it again: the earlier you seek business debt advice from an experienced and reputable insolvency , the greater the number of options you will have and the more improved your chances of saving your business will be.
McAlister & Co are one of the top licenced insolvency practitioners in the UK, and would be glad to offer you help, support and guidance if you are worried about your business’ debt. Simply contact us here, or request your free consultation below to learn more about how we can help:
