A record new year

Arguably one of the burdens of business ownership is the maintenance of company records. This is certainly more prevalent with small (usually) family owned businesses where every so often you have to sit down and bring your books and records up to date.

Unfortunately, there is a worrying trend where I am asked for urgent assistance yet delays are caused by the need to get the books and records in order. In some cases that delay has resulted in the company requiring the protection of administration rather than a stand alone company voluntary arrangement or restructuring outside of any insolvency process.Continue reading

The involuntary creditor

On a majority of occasions business people tell me they have a good business but are suffering from temporary cash flow problems. Almost as an after thought they mention there are tax or VAT arrears and HM Revenue & Customs (“HMRC”) are threatening some form of recovery action, usually winding up or bankruptcy.

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Since September 2003 HMRC have lost their preferential status and rank equally with the general body of creditors. This has resulted in HMRC having to be more commercially minded and, Continue reading

A fool with a pen in their hand!

The heading pretty much sums up my view of a director who grants a personal guarantee for company debts. I am possibly being a little harsh as giving a personal guarantee can sometimes be a non-negotiable term of contract or borrowing.

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In the past I have seen directors who have guaranteed practically every supplier, making you question why they are trading under the vehicle of a limited liability company. Others sign personal guarantees unwittingly; only to discover Continue reading