If you are in business at present it is hard to make money. We get calls here everyday from directors of companies who are struggling with their cash flow requirements. Some of these directors have cash flow finance in place, and yet find that they have lost clients, which means that their facilities have been reviewed. It is not always easy to move from one cash flow provider to another, as there is often a cost.
We have had calls recently from directors who have struggled through the year but found that now at the end of the year they simply cannot go on. Throughout the country, the omens have not been good and we have found that it has been difficult for new and established companies alike to get through the year unscathed.
There are many reasons for business failure which we have found this year. The lack of orders and a constricted cash flow as a result of customers themselves not having cash has a knock on effect down the purchase chain.
It has become evident that even a company with a good order book can be brought to its knees by the failure to get its invoices paid. Every management guru bangs on about cash being king. It is so true. Without cash at bank your business is worth nothing. You can make all the sales in the world, and that will seem great, but sales use up resource which must be paid for and so unless and until you can get in your sales revenue you will make no money and in fact you run the risk of losing money.
We can help you close your company by using a CVL- a creditors voluntary liquidation. This is where you call a meeting of your creditors and tell them that the company is insolvent and has to cease to trade. We put together a statement of affairs and circulate this. A meeting is called, and resolutions passed to close the company. Creditors can attend but in our experience most do not as they know it is pointless to do so.
If you feel that you need to close your company we have years of experience of taking a company through a CVL or a CVA, We can carry out an insolvency process in as little as three weeks from start to finish. There is a cost to closing down your company, and this can be as much as £5,000. However, the cost of not closing down the business properly can cost you even more, especially if you are disqualified as a director.
Call the help with debt helpline on 0808 160 5577.
About the Author:Contact Steve Thatcher a qualified solicitor with Help With Debt (UK) Limited the total debt solutions company. For all further reading see http://www.helpwithdebtuk.com
For personal contact, email sthatcher@helpwithdebtuk.com. If you have any debt problem whatsover either personal or corporate make Steve your first call on 0808 160 5577. All telephone advice is free.
