Most companies will face some kind of cash flow problem at some point. Temporary cash flow problems or financial squeezes usually arise out of matters that are outside of the immediate control of the directors, but when problems like this happen it’s vital you take the right steps and move quickly to ensure the issue doesn’t escalate.
To help you navigate safely through troubled financial waters, we’ve asked Richard Saville of Corporate Financial Services to set out the 10 key steps you need to consider when your business is faced with a financial problem. (more…)
The purpose of putting a company into administration is one that’s widely misunderstood by business owners. So to help de-mystify what’s involved and what it entails; here’s a guide to the company administration process; (more…)
When a company goes into liquidation, it’s generally understood that employees are entitled to redundancy pay. But what about the company directors themselves? Ultimately it is their business that has failed, and their livelihood that has collapsed.
Unbeknown to many directors, the government does provide limited company directors with statutory entitlements, such as redundancy pay, in a number of situations where a limited company has become insolvent and entered liquidation.
With some 80,000 personal insolvencies a year and around 14,000 companies becoming insolvent annually, it’s an issue that many business owners can find themselves facing, but a lack of understanding about statutory entitlements means many limited company directors end up missing out.
We’ve therefore asked Gary Addison, an experienced insolvency and redundancy expert, to explain more about what statutory entitlements actually are, and how they apply to company directors. (more…)
Although it does not necessarily herald the end of a small business, decline into insolvency can bring significant changes in company structure, operations and management style.
It’s worth checking your company for characteristic signs that, if spotted and acted upon early enough, could help you to steer the business away from danger.
Here are 8 early warning signs that indicate your small business could be heading for financial trouble, and the actions you can take to overcome them. (more…)
If there’s one piece of advice to hold above all others while running your business, it’s this: cash is king.
It doesn’t matter how much you are selling or the size of your profit, if your business doesn’t have enough cash to pay staff and suppliers you are in big trouble.
Even successful and profitable businesses can be struck by cash flow problems because as they grow, more working capital is tied up in the business.
Without proper cash flow planning good businesses can suddenly find they don’t have enough money to buy resources to fulfil the orders coming in.
While it may be tempting to ignore a mounting debt problem in your business, it is the worst thing you could do.
If your business is a limited company, there are many avenues open to you to resolve debt-related problems. So, where do you start?
A leading North West law firm is issuing an urgent alarm call to non executive directors (NEDs) warning them that their personal assets could be seized by creditors if their company becomes insolvent.