A business administrator is a qualified business insolvency practitioner who is called in when a company is facing financial difficulties. The administrator’s role is to take over the financial management of the business — and first and foremost to try to get the business out of trouble and trading profitably again.
If business turnaround isn’t feasible, the business administrator will aim to get the best possible deal for the creditors. In some circumstances, the administrator has to fold the business, bankruptcy being the only option.
Once an administrator has been called in, the business is described as having gone ‘into administration.’
An administrator can play a vital role in getting your company’s finances back on track. And whether you run a large corporation or a small business, administration is more likely to deliver a successful outcome if it is initiated sooner rather than later. Company directors can choose to call on a business administration service when it first becomes apparent that the business is failing — while there is still time to take action.
Leave it too late and you won’t have a choice — if creditors are concerned they won’t be paid, the court can call in an administrator.
For a struggling medium or small business, administration can deliver a great deal of change, very quickly. The benefits include:
A business administrator takes over the financial running of the business. Initially, he or she would:
Business insolvency can arise due to problems with cashflow, or because a business has liabilities that exceed its assets, or both. Depending on the situation, the administrator might:
Every business turnaround situation is different — you need an administrator with specialist knowledge in your field. At Touch Financial, we offer a free consultancy service to customers who are in or heading for financial difficulty. We’ll work with you to ensure we understand your business then introduce you to the most suitable administrator for your needs.
Remember, if insolvency is threatening your business, it’s wise to take action now. Continuing to incur debts, knowing you can’t pay them back, could lead to liability for wrongful trading. And finding an administrator as soon as possible increases the chance of a successful business turnaround.
To take the first step, contact one of our experts now – 0845 388 9725.
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