If your company is facing debt problems, there are solutions that can help, whether it’s through negotiating with creditors or restructuring the business. If the debt has reached an unassailable level, and the company needs to come to a close, there are different options to close it up in the most efficient manner.
How can Wilson Field help with Company Debt?
A company can quickly find its debt spiraling out of control for a number of reasons; it may be the result of a bad debt, a decline in profitability or perhaps a fall in sales. Wilson Field are a firm of licensed insolvency practitioners with years of experience resolving company debt issues for firms of all sizes. Wilson Field will work with you to in order to fully understand your company’s current situation and guide you through available courses of action. A thorough analysis will take place to establish whether there is a possibility of rescuing the company, or if it needs putting it to bed in order to make repayments to creditors. Wilson Field are fully qualified to carry out a range of recovery and insolvency procedures, meaning you will be guided from start to finish and expert advice will always be on hand.
Options available to reduce Company Debt
Wilson Field have a number of options available in order to reduce company debt. For more information, click through to the relevant page or get in touch for free.
If your Company Debt has spiraled out of control and your business is threatening to collapse under creditor pressure, administration is a powerful tool that Wilson Field can help put in place in order to get the situation under control. Administration will halt all pending creditor action and prevent them taking any further steps to reclaim their monies. It will also give Wilson Field the opportunity to thoroughly analyse your company’s situation and devise the ideal rescue or recovery solution.
Read more about company administration or pre-pack administration.
Creditors Voluntary Liquidation (CVL)
If Company Debt has reached levels where the chances of recovery are slim, a creditors voluntary liquidation could provide the ideal way to halt further losses to Creditors and help reduce the possibility of Wrongful Trading action being brought against Directors. A creditors voluntary liquidation will mean the end of a company and its debt, but not necessarily the demise of a business.
Read more about creditors voluntary liquidations (CVL).
Company Voluntary Arrangements (CVA)
Company Voluntary Arrangements could be a viable rescue device for directors who feel that a company has a future and are prepared to work hard in order to save it. A company voluntary arrangement involves a company making contribution payments to a licensed insolvency practitioner over a period of time, based on what the company can afford. The insolvency practitioner then distributes this money to Creditors on a pro rata basis and following the final distribution, the company is discharged from the CVA. The company can then carry on trading unencumbered from its previous liabilities.
Read more about company voluntary arrangements (CVA).
Time to Pay Arrangements
For a company struggling with HM Revenue & Customs arrears (HMRC), a time to pay arrangement could provide rescue by allowing repayments to be made installments rather than all at once. This will free up cash flow for the day to day running of a business and allow a company to continue trading. HMRC are most likely to accept a Time to Pay proposal if they feel confident that the arrangement will be correctly managed and the repayments will be honoured. Wilson Field has built up a wealth of experience dealing with the tax office and have developed strong working relationships over time. Wilson Field are able to approach HMRC on a company’s behalf in order to negotiate a structured repayment plan. This will be completely free of charge if HMRC refuse to accept the proposal, at which point your company’s current situation can be re-investigated and an alternative solution sourced.
Read more about time to pay arrangements (TTP).
In some instances, it may be appropriate to reduce company debt through the introduction of capital or investment into the business. There are a variety of ways in which Wilson Field may seek to do this and the options available depend on the individual circumstances surrounding a company. However, options such as asset-based lending, invoice financing, sourcing investment, financial restructuring and consolidation through loans will all be considered.
View our other site on refinancing and funding options.
Wilson Field offers a fast and efficient service with nationwide coverage from a network of regional offices, meaning a free consultation can be arranged at a time and location most convenient to you.
If you’re the director of a company encumbered with debt, get in touch today to arrange a free confidential consultation with no obligation.