Business Rescue
Do you have mounting debts that cannot be managed?
Is your business in trouble?
Want to avoid Insolvency and The Official Receiver?
Want to retain control of your business and keep trading?

The symptoms of a problem are often:
Limited Companies
Your creditors are continually chasing for payment
Suppliers have frozen your accounts
You are constantly near your overdraft limit
You have put your own money into the company and are worried about whether you will get it back

Sole Traders/Partnerships
You are funding the business using personal credit cards rather than its own cash flow
You have received county court claims in respect of bills
You have released equity from assets such as the family home to support the business

Solutions to the problem:
We can often arrange finance or refinancing to repay creditors, aid expansion or assist cashflow on almost
any asset from Buildings to Plants, Machinery and Vehicles. We can also help with cashflow problems by
arranging Invoice Discounting or Factoring facilities.

Administration is a court backed formal procedure where an Insolvency Practitioner takes control of the
day to day running of a company to try and ensure its survival. This can be in the form of renegotiating
payment terms of the company's debts (sometimes under the CVA procedure - see below), refinance of
the existing assets, or, where there is no other alternative, by closing down the business and selling the
assets to achieve a better outcome for creditors than were the company to be placed straight into liquidation.
The Major benefit of Administration is that, once application papers are issued with the court, all creditor
pressure is automatically suspended. This allows the company breathing space to review its position and
plan how best to proceed or put an offer or arrangement to its creditors.

Company Voluntary Arrangement
A Company Voluntary Arrangement ("CVA") in solely for Limited Companies. It is a repayment arrangement
with the creditors which is backed by the courts and legally binding. It gives a viable company the breathing
space to continue trading whilst managing the repayments to the historical creditors, ensuring that the old
debt of the company does not drag the viable business into more serious and permanent problems. A CVA
typically lasts between 3 and 5 years and, whilst it has to be agreed to by 75% of the company's creditors, any
debt which is not cleared within the arrangements life time is written off.
Benefits of a CVA include, recovery action being stopped by the courts, less pressure on cashflow and the
ability of the directors to retain overall control of the business, rather than placing it in the hands of the
official receiver.
If a company has a viable future but an unexpected event or cash flow problems have led to the creditors
applying pressure then a CVA might be the ideal solution.

Unfortunately, it is a fact of life that sometimes a business experiences problems so severe that it is no
longer viable to continue. Where this is the case, the only course of action is Liquidation. This does not
however have to mean complete disaster. In some circumstances, it is possible for the directors or another
interested party to form a new limited company and purchase the assets of the insolvent company in order
to maintain the business as a going concern. There are a number of pitfalls surrounding this area and
directors must be careful to ensure they do not fall foul of the The Companies Act 1985, The insolvency
Act 1986 or the Company Directors Disqualification Act 1986. If a company has no option but to go into
liquidation, then by seeking professional advice a director can ensure the survival of the business as a
going concern and also minimise their liability with any personal guarantees they may have given and
therefore eliminate the chances of them committing an offence under the above legislation.
Sometimes a person's financial situation is such that the most viable way forward is bankruptcy. This is still
a last resort, but no longer holds the same stigma as it has previously. Unless there are suspected criminal
aspects in the bankruptcy, such as fraud or there has been a history of multiple bankruptcies, most people
will receive their discharge within a 12 month period. It is important that the full financial position is
reviewed by an expert before taking steps towards bankruptcy as this will result in the loss of assets.
On the plus side, once you are bankrupt your creditors can no longer legally seek payment and must deal
directly with the court appointed Trustee in bankruptcy. Should bankruptcy be the only way forward,
Credit Rescue offer an advisory service to ease the pain and ensure the matter is dealt with as painlessly
as possible.

Call us today on 0161 850 1267
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