Roofing Company Closure and Rescue Options
Roofing companies operate in a highly competitive and demanding industry, with unique challenges caused by the nature of the business and the wider construction sector. The ever-increasing costs of materials and the constant battle for skilled, experienced labourers while complying with strict industry regulations and managing cash flows that are sensitive to late-paying clients can build into substantial financial challenges. It’s essential that you, as director, are aware of the available insolvency options.
This guide is designed to offer clear, practical advice to roofing companies. We will help you understand your options and detail how you can take decisive steps to address potential financial challenges. This could involve restructuring your company, securing additional funding, or closing your company.
Common financial challenges for roofing companies
We can advise on industry-related financial issues that your roofing company could face, including but not limited to:
- High cost of materials
Materials and supplies for roofers to carry out their work can be costly to acquire, becoming a considerable expense when purchased regularly. These costs can become an even greater issue when affected by global supply chain issues and fluctuations in materials availability. Speak to us if the cost of materials has become unaffordable and you’re struggling to cover the costs. We can advise you of the options best suited to your company. - Late paying clients affecting cash flow
Late payments are a constant problem across the construction sector, and roofing companies are no exception. Delayed payments, especially for work already carried out, can strain your roofing company’s cash flow, leading to delayed payments for labour or equipment. We can help you navigate these issues and break down the available insolvency options that would best fit your company. - Staying compliant with regulations
With constant working at heights, the roofing industry is highly regulated, especially in terms of health and safety. If your roofing company fails to comply with these regulations, or worse an accident happens on site, and you could face serious repercussions for any health and safety breaches. We can advise on your options if your company is struggling financially. - Shortage of skilled labourers
Roofing companies, like other parts of the construction sector, have a skills gap thanks to an ageing workforce and a lack of young replacements. This can mean higher wages for those that remain, delays to projects where enough skilled workers can’t be sourced, and potentially poorer quality work, which could lead to financial losses. Contact us if you’re struggling to pay your staff or if other financial challenges are affecting your company. We can assess your situation and help you find the best way forward. - Bounce Back Loans (BBL)
The Bounce Back Loan Scheme was a vital lifeline for companies across all sectors during the COVID-19 pandemic. However, many now face difficulties in repaying them alongside any other financial challenges. We can guide you through your repayment options and explain how these loans are managed in different insolvency scenarios, helping you find the best solution for your business.
How we can help rescue your roofing company
Below are two formal insolvency procedures that would allow your roofing company to continue trading while protected from further action from creditors:
- Repay your company debts in a payment plan via a Company Voluntary Arrangement (CVA)
A CVA is a formal payment plan between your company and its creditors. The procedure allows your company to repay its unsecured debts in instalments tailored to what it can afford monthly. It would allow your roofing company to continue trading, retaining its goodwill and reputation with customers. When agreed to and enacted, all interest and charges are dropped, and creditors in the arrangement cannot take further legal action. The process lasts for up to five years, and on successful completion, any remaining unsecured debt in the arrangement is written off.
More on a Company Voluntary Arrangement - Restructuring the company through administration
By placing your roofing company into administration, it receives a temporary state of protection, enabling the company to continue trading. As licensed insolvency practitioners, we will take on the role of administrator, aiming to rescue the company as a going concern. This may mean restructuring the business, streamlining operations, making staffing changes or finding new investments. The administrator will also consider exit strategies from administration, whether that be a potential sale of the business, assets, the whole company, or transitioning to an alternative insolvency procedure.
More on administration
How we can help close and liquidate your roofing company
If your roofing company is insolvent, with creditor pressure at a level where trading can’t continue, liquidating your company would draw a line under its operations and write off its unsecured debts.
- Closing your company down via a Creditors Voluntary Liquidation (CVL)
A CVL is a formal insolvency procedure for limited companies. By entering a CVL, your roofing company ceases trading and closes. Doing so draws a line under all the company’s obligations. During the process, your roofing company’s assets are realised, and outgoing payment agreements like loans and leases are terminated. Once the process concludes, any remaining unsecured debts are written off. If eligible, you and your employees can apply for statutory entitlements such as redundancy and holiday pay. If the company cannot afford to pay these entitlements, staff can claim through the Redundancy Payment Services.
More on a Creditors Voluntary Liquidation - Close your company down and start again via a pre-pack liquidation
A pre-pack liquidation is an informal term for a type of liquidation where one company agrees to the pre-purchase of the assets of an existing company, which is then liquidated. This procedure would allow your business to continue trading in a new limited company without any historical, unsecured debt. Doing so causes minimal disruption to the business’s brand, customer base, and operational activities. The new limited company can also retain key assets such as leases, equipment, as well as the potential transfer of employees under TUPE regulations. In some cases, you may reuse your company’s trading name, but this can be a complex process. We can advise you on these processes, and how they work.
More on pre-pack liquidation
Commercial finance for roofing companies
If your roofing company has a steady cash flow but is at risk of being impacted by a significant upcoming payment, commercial finance could provide the support you need. There are several financing options that can help you manage one-time expenses or cover shortfalls in revenue. Contact us to explore the best commercial finance solutions tailored to your company’s situation.
More on commercial financeHow to get in touch with us: The next steps
If your roofing company is struggling against one or more financial challenges, it’s important to understand your options to close or rescue the company. Our initial advisers will offer a comprehensive explanation of the different options available, and our experienced consultants will look at tailoring our processes to your company’s circumstances.
Contact our initial advisers. They can advise you on your company’s solvent position and outline the options best suited to its circumstances.
- Speak with our initial advisers
Contact our team via phone or online chat. If we can help, we will arrange a free consultation with one of our consultants to discuss your situation in more depth. - Initial assessment
During the consultation, we will advise if an insolvency procedure is the most appropriate route forward or what alternative options are available. - Formally engage with Wilson Field
After your consultation, if there is an appropriate route forward, we will issue the relevant documentation for you to formally engage us.
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