Does your company have debt problems? Many companies face debt issues at one point or another, ranging from company overdrafts that are nearing their limits to statutory payment demands from unpaid and frustrated creditors.
If your company needs debt advice, it’s important not to panic. A wide selection of options are available for helping your company repay its creditors and return back to normal trading, ranging from emergency financing to voluntary arrangements.
When your company faces serious debt problems, it’s important to solve both the results of the problem – in this case, creditor pressure – and the series of choices your company made that caused the debt problem to emerge in the first place.
In this guide, we’ll explain your options for company debt help to get your business back on track. We’ll also share common warning signs of impending debt issues that you can use to ensure your company never faces serious debt issues again.
If your company is doing well and generating a significant profit every quarter, it’s often difficult to imagine that it could one day find itself facing debt issues. A lot of companies face debt problems that creep up on them gradually over time.
These are often caused by poor financial management or a lack of long-term finance planning. Even if your company seems to be doing well right now, it could be at risk of serious debt issues if it displays some of the following indicators:
All of these issues can seem minor when they occur one by one, but they can often lead to serious debt issues. When market conditions change or a client fails to pay your company, it could go from profitable to struggling extremely quickly.
If your company is experiencing a debt crisis, it will likely begin to come under a great deal of pressure from its creditors. Failing to pay creditors on time has the potential to lead to your company being sent a statutory payment demand.
This is a final demand for payment from your company’s creditors, requiring your company to pay within 21 days. At this point, you need to take decisive action on a debt relief solution to avoid your company being wound up.
Your options, as a company director, vary depending on whether your company is viable or not. If your company is viable and capable of continuing to trade once its creditors are paid, you can:
If your company is no longer viable, you also have a number of options for ending creditor pressure and relieving its debt issues. Some of these options may result in the closure of your company.
These include compulsory liquidation, in which your company will be shut down by its creditors and its assets liquidated, and creditors voluntary liquidation (CVL) – a process involving the voluntary liquidation of your company’s major assets.
We’ve helped hundreds of struggling UK businesses relieve creditor pressure and facilitate a turnaround. If your business is struggling with debt, we can offer help and company debt advice to ensure you make the right decisions.
From CVAs to emergency financing, we’ve helped other companies raise cash and work out arrangements with their creditors that facilitated a full recovery. Contact us today to learn more about our company debt help and advice services.