What To Do When Facing Corporate Insolvency
Covid-19 has been a tough time for everyone. With thousands of businesses forced to close with little or no notice. Those businesses are still expected to pay wages, rent and tax, there is no surprise many are facing financial issues. Without the right support and advice, businesses can spiral into debt, and at the end of this road, corporate insolvency.
But what is corporate insolvency, and how can you prevent your business from falling down this dark hole? Or perhaps, you are staring at the mouth of the monster head-on and are looking for the right help to soften the blow for you and your business.
Please keep reading to learn more about corporate insolvency and how we can support you and your business in these financial difficulties. Debt doesn’t have to be the end, and here at Athena Debt Recovery, we can ensure you are provided with the best advice and support in the industry.
What is Corporate Insolvency?
Insolvency law in the UK relates to companies who are unable to repay their debts or are struggling to do so as and when they fall due. Insolvency can lead to the end of your business, the redundancies of your employees and ever more severe consequences for yourself.
Corporate insolvencies happen throughout the year, but research from the insolvency and restructuring trade body R3 has shown that they may increase this winter, starting as early as this October. An overwhelming 93.7% of respondents in the study expect corporate insolvency numbers to rise over the next year. While a following 56.1% predicted that the increase will occur between October and December 2020.
This can be attributed in part to the Covid-19 pandemic, with 61.7% of respondents suggesting the main triggers for corporate insolvency advice would be as a result of rent payments or arrears. A further 49.7% attribute it to trade debts, 48.1% to tax payments or arrears and 35.5% say it could be as a result of wage payments.
Cash flow problems can happen when you least expect them. Even the most profitable businesses can become at risk of insolvency when facing a financial crisis.
The best way to avoid corporate insolvency is to prevent it as early as possible. If your company is facing financial difficulties, then seeking legal advice and support from Athena Debt Recovery will help you understand the easiest and best way out of this issue. Our pragmatic and professional legal advice will give you the time you need to get back on track, and when possible, avoid insolvency altogether.
Athena Debt Recovery covers the following:
- Business Restructuring
- Debt Recovery and Credit Control Reviews and Procedures
- Turnaround Packages
- Debt Management
- Cash-flow Improvement Processes
- Company Voluntary Arrangements
- Voluntary and Compulsory Liquidations
- Business Sales
- Director Disqualification Proceedings
- Misfeasance Claims
If insolvency can’t be prevented, then we will work with you each step of the way to find the most beneficial outcome for you, your employees, your business and your creditors. Rather than ending everything on a bad note, there is always something which can be done to soften the situation for everyone affected by the insolvency.
Seeking legal support and advice, from Athena Debt Recovery, ensures that your exposure to personal liability is reduced and protects your long-term career aspirations. With knowledgeable and experienced experts by your side, a solution can be found which is less damaging than dealing with the problem alone.
No matter the size of your business, debt is serious. Athena Debt Recovery works with clients of all sizes from entrepreneurs, start-ups, established private companies, SMEs and professional partnerships. We are here to help everyone find a solution to their corporate insolvency issues. By working with us, you can free up your time to run your business stress-free.
Please take a look at our website to learn more about Athena Debt Recovery and the services we can offer you. We pride ourselves on providing practical and cost-effective debt recovery and insolvency support and advice. With our help, you can prevent corporate insolvency and protect your business and employees. Don’t hesitate to contact us today if you think you are heading in this direction or are facing insolvency and want knowledge, expertise and understanding on your side.