For many small to medium-sized enterprises (SMEs), financial uncertainty can be a persistent challenge.
Whether it’s due to cash flow struggles, rising costs, or market volatility, the risk of insolvency can cast a long shadow over day-to-day operations. That’s where insolvency risk services come into play - offering clarity, support, and practical solutions when you need them most.
At McAlister & Co, we understand how overwhelming it can be to face financial distress. Our goal is to provide approachable, transparent guidance, helping you not only understand your options but take proactive steps to protect your business - or close with dignity if that’s the best path forward.
What Are Insolvency Risk Services?
Insolvency risk services are tailored advisory and support solutions aimed at identifying, managing, and reducing the risk of business insolvency. These services can include:
- Financial health checks
- Cash flow analysis
- Debt restructuring advice
- Negotiation with creditors (including HMRC)
- Turnaround planning
- Formal insolvency procedures, if required
For many SMEs, these services act as a lifeline, offering early intervention to prevent insolvency, or expert guidance to navigate it if it becomes unavoidable.
When Should You Seek Insolvency Risk Services?
The earlier you seek help, the more options you’ll have. If your business is experiencing any of the following warning signs of insolvency, it may be time to speak to a licensed insolvency practitioner:
- Inability to pay suppliers or HMRC on time
- Regularly using credit to cover running costs
- Cash flow pressures or overdrawn bank accounts
- Falling margins or increasing losses
- Staff wages becoming difficult to meet
- Legal threats from creditors
Waiting too long can limit your choices, which is why we always recommend that you seek advice as early as possible, so you can either explore informal solutions or restructure the business to avoid formal insolvency procedures altogether.
Insolvency Risk Services from McAlister & Co
At McAlister & Co, we specialise in insolvency risk services designed to meet you where you are - without judgement or pressure. Our expert team will listen to your concerns and assess your situation with honesty and empathy. Here’s how we support SMEs through each stage of financial difficulty:
1. Early-Stage Review and Business Health Check
Our first step is always understanding your current financial position. We’ll begin by analysing your cash flow, liabilities, and operational challenges to assess the severity of the situation. Then, you’ll receive a clear, jargon-free overview of your options so you can make informed decisions.
2. Identifying and Managing Insolvency Risks
If your business is at risk, we’ll work with you to identify the causes - whether that’s debt, late payments, or a changing market - and help you develop a realistic turnaround plan. This might include cost-cutting strategies, financing options, or informal creditor arrangements.
3. Creditor Negotiation and HMRC Support
Dealing with creditors, especially HMRC, can feel daunting. We’re experienced in negotiating Time to Pay arrangements and informal repayment plans that offer your business the breathing space it needs. Often, creditors prefer cooperation over enforcement, and we help present your case professionally and effectively to ensure the best possible outcomes for everyone involved.
4. Rescue and Restructuring Solutions
Where appropriate, we may recommend formal insolvency tools that enable you to rescue your business and turn things around, such as a company voluntary arrangement (CVA) or pre-pack administration.
A CVA allows you to freeze your debts and repay over time, while continuing to trade. A pre-pack, on the other hand, involves selling the business to a new entity (often involving existing directors) to preserve jobs and operations.
Both options aim to protect viable elements of your business while managing insolvency risks legally and efficiently.
5. When Closure is the Best Option
Sometimes, closure is the most practical choice. If the business is no longer viable, we’ll support you through a creditors’ voluntary liquidation (CVL) or other appropriate process. Our goal is to ensure closure is handled with professionalism, minimising personal liability and protecting your reputation where possible.
We’ll also advise you on director responsibilities, including your legal obligations and potential consequences if insolvency is ignored.
Why Early Action Makes All the Difference
In our experience, many businesses wait too long to ask for help - often until they’re served with a winding-up petition or court judgement. But insolvency doesn’t happen overnight. Signs such as missed payments, cash flow dips, or mounting creditor pressure are often there long before insolvency sets in.
Early intervention allows you to be proactive, rather than reactive. It opens doors to funding, creditor agreements, and strategic change. Waiting until the eleventh hour, on the other hand, can mean fewer choices and more risk for directors and staff alike.
How McAlister & Co Can Help
What sets McAlister & Co apart is our commitment to people - not just numbers. We understand that every business and every situation is unique, which is why our insolvency risk services are designed to be accessible, empathetic, and practical.
Whether you want to fight for your business or close it down with dignity, we’re here to help you find the right path forward. So, contact our expert team today to learn more about our insolvency risk services and how we can help.