Is your business in trouble?
Following the shocking news that insolvencies for businesses are up 13% in the first half of 2017, Northern Irish-based debt strategists Bell & Company have advised companies to try a consultancy approach before they consider a formal insolvency route.
“The thought of bankruptcy is terrifying and many company directors and individuals don’t know they have any other options or know where to turn when insolvency is looming,” said Terry Bell, Principal Director of Bell & Company.
Recent statistics released from the government show that the unusual high level of insolvencies in Q1 and Q2 this year followed a large number of UK connected personal companies entering liquidation.
The other prominent statistic shows that the first half of 2017 had the most personal and company insolvencies since 2014. There are further warnings from government officials that a further rise is not beyond the realms of possibility.
“While it can be an uncomfortable and unsettling time, consultancy can be a way to avoid closing down a company that a lot of very hard work went into. There are many options and avenues available prior to a formal insolvency route to satisfy all parties without having to take a formal route. The key lies in getting impartial advice.”
There are often ways of restructuring a business to avoid insolvency and return to a profitable state through utilising the correct legal processes to help protect the company and its employees, as well as managing insolvency strategies that best look after company interests.
If businesses are concerned about things such as personal guarantee exposure, professional dispute resolution, and loan sales or vulture funds, Bell strongly advises they take a consultancy route as soon as they notice a problem with their finances.
Bell summarised: “It’s hard to take the first steps in seeking advice, because that means admitting your company is in trouble. However, it also means there’s a chance the problem can be fixed before insolvency becomes a serious thought.”