Insolvency Company UK

Despite the introduction of the government’s tax deferral scheme at the end of 2008, the UK insolvency sector is still estimating that around 20,000 companies will go into administration or receivership this year, with many questioning whether it is tax payments that are being deferred or simply delayed insolvency.

A survey carried out by R3, the UK trade association for insolvency, business recovery and turnaround specialists, revealed that experts believe we have not yet seen the worst of this recession. Over two thirds believe that this recession will last longer than that which occurred in the 1990s, and three quarters believe that more businesses will collapse this time.

Warning Signs of Business Insolvency

It may not be apparent, initially, with the books still showing a profit being made. However, the best rule of thumb is if you are unable to pay bills when they fall due or your assets are worth less than your liabilities, then it is likely that your business is insolvent.

There are steps you can take to best protect your firm from insolvency and ultimately, yourself and your family from personal liability. Choosing a suitable structure (such as a limited liability partnership or limited company) and building up a good working relationship with your creditors, will both help towards minimising any personal impact, should insolvency occur. An effective director will also consistently keep a watchful eye on cashflow and balance sheets, to try and correct any unfavourable inbalance before it escalates. Indeed, it is a director’s responsibility to ensure that a company always acts in the best interests of its creditors. To fail to be seen doing so can result in substantial fines and a ban on starting up any additional companies for up to 15 years.

Insolvency Company UK – What Should I Do Now?

If you have reached the stage of insolvency, it is vital that you act immediately to reduce the risk to your own person. You need to speak with any licensed insolvency company in the UK. A trained professional may be able to arrange additional funding, whether through further borrowing, collecting unpaid debts from your customers, Invoice Factoring or selling off some assets. They may also be able to negotiate with your creditors and achieve more favourable and convenient payment terms. It may be necessary to make a voluntary arrangement, however, or, in the worst case scenario, to cease trading. Any reputable insolvency company in the UK will advise you of the best course of action for your particular circumstances.

How Touch Financial Can Help?

Touch Financial is a leading insolvency company in the UK. We offer a range of services to help businesses facing insolvency, such as debt collection and Factoring. Debt collection in particular has helped countless firms realise unpaid debts and release their cashflow. Our highly successful method of communicating effectively with the customer, rather than sending threatening letters and making demanding phone calls, has reaped rewards for business owners, desperate to secure further funding. So, if you have an outstanding debt of over £1000 and client invoices which are overdue by 60 days or more, ring us on 0845 388 9725 or complete one of our online quote forms.

With R3 members predicting that company insolvencies will peak at 19,796 this year, particularly in the retail sector, an influx of price wars appears to be imminent, despite the knock on effect with regard to profit margins. To avoid having to resort to these measures, business owners are best advised to maintain a strict overview of their firm’s finances and practices.

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