Utilising the expert knowledge of our Insolvency Practitioners to either turn your business around or investigate formal liquidation options.
Whether you’ve set up in business as a sole trader or a company director, retaining control of your cash flow is crucial to success. Lack of cash is one of the main causes of business failure, even for those profitable in the past.
The problem is that, once financial decline begins it can be difficult to get back on track, so how can you take control of this vital element of your business?
Sole traders carry a heavy burden in terms of personal liability – if your business goes under, you’re personally liable for its debts. So although you cannot plan for every outcome, there are a number of ways to protect yourself from the threat of insolvency.
It’s the underlying systems and procedures used every day that will help you stay in control. Regular invoicing and payment collection are just two areas that require efficient processes to be in place if you’re to maximise cash availability. If you understand why poor credit control exposes your business to the risk of bad debt, for example, it’s less likely to affect your business to the point of serious financial decline.
Licensed insolvency practitioners (IPs) offer in-depth business knowledge and industry experience, and often have contacts with alternative lenders offering flexible finance deals. It’s possible to seek professional insolvency advice at any stage of business development, not only in cases of dire need.
Start-up businesses and established organisations alike can benefit greatly from the commercial acumen and industry experience offered by a licensed IP, and ensure the decisions made are based on professional guidance.
Cash flow forecasts offer valuable insight into your cash needs over the coming months. They can be used to avoid shortfalls and identify cash surpluses, allowing you to plan a growth strategy or simply remain confident that you can pay the bills.
When you can’t pay your bills as they fall due, your business may be insolvent. This doesn’t mean that it has to close, however. With so many effective insolvency procedures available to Northern Ireland businesses, you may be able to get back on track with the guidance of a licensed insolvency practitioner.
In the majority of circumstances, you’ll benefit from limited liability in the event of the company’s insolvency as a company director. There are some instances when you do become liable for company debts, however – in the face of misconduct, for example, or wrongful trading.
Another common example is if you borrow money from your own company. When the business enters insolvency you’ll become liable to repay this amount from your personal funds, regardless of whether you can afford to. In some cases, this can result in personal bankruptcy alongside a company’s insolvency.
Northern Ireland Debt Solutions can arrange a free same-day meeting to discuss your situation. Our licensed insolvency practitioners will ensure you understand all the options available, and guide you towards the best solution.
After losing my job, I started relying on credit cards and payday loans to get me through the month. As the debt build up, I found it increasingly difficult to keep up with the monthly payments and was hit with late penalties and added interest which only made the problem worse.
I was ignoring letters and phone calls, and dreading knocks on the door fearing it was bailiffs. This was when I knew I had to seek expert advice. After contacting Northern Ireland Debt Solutions, I felt an immediate sense of relief. Within a matter of days, the phone calls and threatening letters stopped, and I was finally able to move on with my life.
After burying my head in the sand for many years, I knew I had to face up to my debt problems. I was ashamed of the situation I had got myself in to, and it took a lot of courage to pick up the phone and make that first call to Northern Ireland Debt Solutions.
My adviser was sympathetic to my problems and I never felt as though I was being judged. He explained all of the options which were available to me and explained how each would work in my situation. While bankruptcy is a big step, I knew it was the best thing for my circumstances. I paid off what I could afford and the rest was written off. Three years on, I am in a much better place financially and able to look forward to the future.