There are a number of company rescue procedures that can be assessed to offer a life line to insolvent companies. These processes can help by paying the company’s debts outright, by coming to an agreement on more manageable payment terms, or by entering into a formal company insolvency process. There is no ‘one size fits all approach’; the best option for a company depends on the individual circumstances of the case.
As insolvency experts, we can offer advice and assistance on all of these company rescue procedures and more.
Company Voluntary Arrangement (CVA)
A Company Voluntary Arrangement (CVA) is a payment plan negotiated with your creditors by an insolvency practitioner. A CVA sets out payment terms which allow your company to repay all or part of its debts over a period of time, via monthly instalments. A CVA can help an insolvent company to recover from its debts by making the debt much more manageable and allowing the company to continue trading in order to work through to solvency. We would look into your company finances to determine what your company can afford to pay back over a fair period of time, in order to give your CVA proposal the best possible chance of being approved by your creditors. Contact Company Insolvency Advice today to discuss if a CVA is a viable option for you.
Time To Pay Arrangements
A Time to Pay Arrangement is an agreement we can negotiate with HMRC on your behalf, if your business is falling behind with its VAT, PAYE and other business tax obligations. A Time To Pay Arrangement gives your company extra time to make these tax payments, so that you can pay your business tax bill via monthly instalments over an agreed period time. We would assess your case, build your proposal and negotiate directly with HMRC on your behalf, to give your Time To Pay proposal the best possible chance of being approved.
Company administration is a procedure where an appointed Administrator would take control of your business, with the aim of rescuing it from insolvency and maximising the value from business assets. It might be the view of the Administrator to restructure the company, to close down underperforming business streams, or to sell off business assets, in order to pay off debts and bring the company back to solvency. One of the major benefits of company administration is that once a company is put into administration, all legal proceedings against the company are halted. This immediately halts legal pressure from creditors and allows us the time and space to work so that we can make the business viable again.
Pre-Pack Administration involves all or a part of the business and its assets being sold to another company, in order to raise the funds needed to pay debts to creditors. The company’s current directors are allowed to purchase the company’s assets under a new company. The business and its assets will be valued, and the Insolvency Practitioner will arrange for the sale of the assets to another entity. Then once we put the company into administration, the business assets are immediately sold to the new entity.
Business Finance Solutions
We can advise you on a number of ways that your company could raise cash in order to pay off its debts. These business finance solutions can include invoice factoring, crowd funding, asset finance and private investment. We can assess your company’s situation and determine which finance option is best for you. Through our range of industry contacts, we can put you in touch with recommended companies that can offer these financing services.