The instant you feel uncomfortable about the financial situation of your business, ask for help – that’s the unbiased advice from Northampton-based business rescue and insolvency experts, Marshman Price.
Why? Because there are at least 3 ways a business can be given time to restructure that should benefit everyone concerned – from the company’s shareholders and directors, to its customers, workforce and creditors.
- A company voluntary arrangement (CVA)
A recognised legal procedure that enables a company to enter a binding agreement with its creditors to reschedule its debts, detailing how the company’s assets and liabilities will be dealt with and allowing the directors to retain control of the company. As long as the company adheres to the terms of the CVA, the company can continue to trade with minimal outside intervention.
A viable business coming under pressure from its creditors can be placed into administration. This prevents creditors from taking action against the company and gives vital time to formulate and implement a business recovery or restructuring package.
- Informal agreement with creditors
Where there are relatively few creditors it may be possible to get them to agree to hold off from enforcing their debts while a rescue package is put in place.
“It is so important for any business owner with the slightest inkling that things are not stacking up financially to seek advice immediately”, says Gary Pettit of Marshman Price. “There are numerous options available in the early stages of financial difficulty, but the longer the warning signs are ignored the more the chances of a favourable outcome are restricted. You should never bury your head and hope the problems will go away. All too often those (ignored) problems will simply get worse. Therefore, act now and promote the chances of Marshman Price achieving the best solution available for your circumstances.”
Marshman Price has an enviable record of saving businesses within the county and can recall many success stories – even recently in these difficult economic times. If you are feeling uncomfortable with the financial situation of your business, make an appointment for a free one-hour consultation to discuss, in full confidentiality, what options are available to you. Telephone Gary Pettit, Gavin Bates or Kym Carvell on 01604 212150 or email email@example.com.