If you have or expect to have a debt with HMRC, either for VAT or PAYE, then you should think about applying for a ‘Time to Pay’ arrangement. Even if the debt isn’t overdue yet. Unexpected expenditure or bad debt can quickly impact business cash flow.

HMRC is the most common business creditor, so it’s not usual for businesses to build debt with them. These debts can quickly become out of control. We can help you negotiate a Time to Pay arrangement.

We all work so hard to build and protect our business and assets. This is especially the case in times of financial stress. 

We can work with you to help preserve that hard work and protect as much as possible. There are options for you rather than simply throwing in the towel and walking away and closing the business.

Selling your business is always an option for you, whether the business is in financial distress or not.  There are always potential buyers out there.

We can assist you in finding a buyer, completing the sale and, hopefully, avoiding the need for the business to close and go into insolvency.

A business can be bought back by the original owners via Pre Pack Administration. This can happen through an acquisition of the business and assets prior to insolvency. An Insolvency Practitioner and Creditors ratify the sale. Or you can simultaneously purchase both the business and assets to your company from an Insolvency Practitioner on the closure of your old business.

Insolvency is always a last resort. However, if insolvency is unavoidable and you are keen to carry on trading and want the business to continue, then we have over 30 years of experience in assisting business owners like you. We can help buy the business back from your appointed Insolvency Practitioner.  This is a simple process:

1. You select your Insolvency Practitioner (IP)
2. You agree on a price to buy the business back with your IP
3. You agree on the legal documents in relation to the assets you are buying
4. You set up a new company to buy the business back
5. Your new company acquires the business and assets and you recommence trading

Here at Save the Business, we can assist you with all 5 stages of this process.

• We can recommend the IP. We can help you put forward an offer and work with you and the IP to agree on the right price
• We will agree on the legal documents, and we can set up a new company for you
• We can also secure new finance for the new company to buy the business back which will help assist with cashflow

Whilst the IP has to follow certain guidelines and regulations to make this happen, we can assist you through this process with your and your family’s best interests at heart.

If a creditor is owed more than £750 it can petition the Courts to force an insolvent company into compulsory liquidation.

This is done by way of a winding-up petition and should only be used in relation to undisputed debt situations. It should not be used as a debt collection tool for disputed debt. If a company receives a winding-up petition, its bank accounts will be frozen as soon as the bank becomes aware and additional creditors will be able to attach to the original petition.

Voluntary liquidation, also known as voluntary winding-up, is initiated by the directors or owners of a company when they have decided that a company does not have a viable future. There could be many reasons to liquidate or wind up a company. The process can however potentially save your business by acquiring the assets back at proper value from the Liquidator.

Company Administration is an insolvency procedure aimed at protecting as much of the business and assets as possible, and at the same time protecting the company against credit action whilst a way forward and a solution can be found. 

No creditor can take any action against the company once the Company Administration process has commenced, taking credit pressure away from you almost immediately.    Company Administration is a simple process that involves directors filing an application at court to appoint their chosen Insolvency Practitioner, who takes control of the company and works with you to agree on the best solution possible for the company. Whether that is turning it into a profitable business or simply selling the assets to achieve a better price than would be achieved if the business simply closes down.

A Company Voluntary Arrangement (CVA) is, in a nutshell, a contract with the business’ unsecured creditors under which they accept Proposals from the directors to pay off the Company’s debts over a period of time. Either in full or by an agreed percentage.

The benefit of such an arrangement is that YOU remain in control of the business. By using a CVA, you can buy yourself time (normally 3-5 years) to trade out of your difficulties.

If you have taken the decision to throw in the towel and you no longer want to carry on trading, we can work with you and make this usually difficult and stressful situation as painless as possible for you and your family. 

We will discuss options with you and work out the easiest least stressful way of closing your business down.