What is a business recovery plan and how can it help you navigate your way out of financial difficulty? We share everything you need to know here.
When your business is in financial trouble, it can be hard to see a way out. You might be struggling to pay staff or suppliers, be under pressure from HMRC, or simply running out of cash. But while the situation might feel overwhelming, there is a way forward.
A well-structured business recovery plan can give you clarity, restore control, and offer a route back to profitability. But what is a business recovery plan — and how does it work?
In this guide, we break down each stage of the business recovery process and show how McAlister & Co can support you every step of the way.
What Is a Business Recovery Plan?
A business recovery plan is a tailored roadmap to help a struggling company stabilise, manage its debts, and return to financial health. It’s developed in consultation with experienced professionals - typically licensed insolvency practitioners - and may include strategic restructuring, financial planning, creditor negotiations, and legal insolvency procedures.
At McAlister & Co, our recovery plans are always built with one goal in mind: giving you the best possible chance to rescue your business.
Step 1: Initial Consultation
Every business recovery journey starts with a confidential consultation. This is where we get to know your business, understand the challenges you're facing, and assess the root causes of your financial difficulties — whether that’s falling revenue, cash flow issues, or unmanageable debts.
This initial chat is free, confidential, and without obligation. We’ll listen to your concerns, assess your position, and start identifying your options.
Step 2: Reviewing Cash Flow and Financial Health
Once we understand your situation, we take a deep dive into your finances. This includes analysing your recent cash flow to understand where money is being spent, what is owed to creditors, and whether any invoices remain unpaid. We’ll also examine your profit margins and cost structures to identify pressure points and highlight areas that need immediate attention.
This in-depth financial review is what forms the basis of your recovery plan. By understanding the financial pressure points, we can begin to map out what needs to change — and fast.
Step 3: Creditor Negotiations and Informal Arrangements
Often, a company’s biggest stressors are unpaid creditors or looming tax bills. We’ll support you in opening lines of communication with creditors, including HMRC, to explore repayment plans or negotiate terms.
One popular solution is a Time to Pay (TTP) arrangement with HMRC, which allows you to repay your tax debt over an agreed period — helping to avoid penalties and legal action.
Step 4: Exploring Refinancing and Funding Options
Sometimes, improving your cash flow requires a financial boost. If that’s the case, we’ll explore a range of funding options. These could include invoice finance, where funds are advanced against unpaid invoices, or asset refinancing, which releases value tied up in equipment or stock.
Depending on your situation, we might also consider short-term business loans, a director’s loan, or approaching investors. If there are any grant schemes or alternative lending routes available, we’ll identify those too. Learn more about different financing options here.
Step 5: Cutting Costs and Operational Efficiencies
Cutting costs is often a vital part of recovery, but it doesn’t mean gutting your business. Instead, we’ll help you find smart ways to reduce overheads without harming your ability to operate.
This might involve eliminating unnecessary spending, renegotiating supplier contracts, reviewing staffing models, or streamlining your day-to-day operations. Even modest changes in how you operate can make a big difference to your bottom line.
Step 6: Formal Recovery Procedures
If your debts are simply too great to manage informally, we’ll look at formal procedures that can give you legal protection while you restructure. A company voluntary arrangement (CVA), for example, allows you to propose a repayment plan to your creditors over a fixed period. It enables you to continue trading and, once the term is complete, any remaining debt is typically written off.
Another option is pre-pack administration. This involves selling your company’s assets and operations to a new entity — often set up by the same directors — allowing you to continue running the business without the burden of existing debts. These processes are designed to help viable companies survive, protect jobs, and preserve value.
Step 7: Implementation and Monitoring
Once the plan is agreed, we’ll also help you put it into action. This could involve managing payments to creditors, working with lenders or stakeholders, or helping restructure your operations.
Most importantly, we don’t just hand over a plan and walk away. Instead, we remain closely involved, offering regular check-ins and guidance to ensure everything stays on track. Our hands-on support can make all the difference during the critical early months of recovery.
Step 8: Alternatives if Recovery Isn’t an Option
Sometimes, despite everyone’s best efforts, recovery just isn’t possible. If that’s the case, we’ll guide you through the next steps with care and professionalism. This could involve a creditors’ voluntary liquidation (CVL), which allows you to close your company in a controlled and fair way.
In other cases, compulsory liquidation or company dissolution might be the best route forward. Whatever the outcome, we’ll ensure you meet your legal obligations and support you in protecting your personal position wherever possible.
Why Choose McAlister & Co for your Business Recovery Plan?
We’re not just insolvency practitioners — we’re business rescue specialists. At McAlister & Co, we’re experts in helping businesses through financial difficulty. With over 20 years’ experience in business rescue and insolvency, we combine technical expertise with a human approach.
We understand that financial stress takes its toll, and we’re here to offer honest advice, practical solutions, and a route forward — without judgement. So, if you’re wondering “what is a business recovery plan?” or if you are worried about your company’s future, don’t wait. We’re here to help.
We offer:
- Clear, jargon-free advice
- Empathy, support, and zero judgement
- Fast action and responsive service
- Licensed professionals who work for you
Take the first step to recovery today. Contact McAlister & Co for expert advice and a free consultation.
Reach out here.