The world of commerce can be tough, and when a business is feeling the pinch, it is time for drastic action. It might be a cash flow problem, which isn’t helped by slow invoice payments, or it could be that the products are simply not selling, but whatever the cause of the downturn, it is imperative to seek expert help. There are online organisations that specialise in business recovery, and they might be able to turn things around, and it is only by talking to a business recovery expert that you can make an informed decision on where to go from there.
While things might look depressive from the owner’s perspective, the damage is often surface deep and with some timely expert intervention, a company can often be saved. In order to determine the fate of a company, the recovery expert would first diagnose the reasons for the poor performance, and if they feel the business can be saved, a recovery plan would be created. If your business is going from bad to worse, why not ask an expert to cast their eyes over your organisation? An experienced business administrator might be able to see a way that the company can be salvaged, and in many cases, the company continues to trade, with some necessary changes in place.
Creditors Voluntary Liquidation
Creditors Voluntary Liquidation (CVL) is one form of liquidation that is commonly used to wind up a company’s affairs and the directors of the said company would all have to agree that the company should be placed into insolvent liquidation. The first stage would be to appoint a liquidator, who must be a licensed insolvency practitioner, and whose responsibility it is to ensure that all the creditors are paid after the assets are auctioned off. CVA is the right choice for a business that is not a viable concern, and if your company has reached this stage, there are online business experts that include licensed insolvency practitioners, and all it takes to seek their advice is an online search.
This is typically ordered by a court, and would normally follow a petition by one of the following:
- The Directors
- The Company
- An Administrator
- A Shareholder
- A Creditor
The reasons for the compulsory order to wind up the business are usually that the company is unable to pay its debts, and either a major creditor, or another affected party would initiate the petition.
In a situation where a business is losing money and the owner(s) can see no way to change that, it is wise to call in a business recovery expert, and with a Google search, you can quickly determine the health of your company, and should it be at all possible to continue trading, the business guru will point this out. Of course, whatever the outcome, sacrifices must be made, and often the recovery professional insists on major changes in the way the company is administrated.
Katie is a finance specialist with one of the biggest firms in London. From savings to investments, there’s nothing she can’t advise on and she’s here to help spread the word and help you on your way to financial freedom.