If your Company has increasing debt issues and creditors are pressuring you for the payment that cannot be discharged, then advice should be sought from us as soon as possible.
We will guide you as to what you should or shouldn’t be doing and what you can or can’t do if your Company is suffering from financial difficulties.
Many companies across UK have to come to terms with creditor pressure, which could have arisen for a number of reasons, and sometimes such pressure could lead to a formal corporate insolvency procedure. You may feel burdened when creditor pressure begins to mount, but if you contact us as soon as you know that the creditor pressure will become too great to deal with, the better chance we have of helping you avoid a formal insolvency procedure. Here at Business Rescue Network, we provide all initial advice and guidance free of charge, so contact us today if you are facing mounting creditor pressure.
How will Business Rescue Network be able to help me?
We are experienced in helping businesses that are struggling financially. We have helped rescue many businesses across a broad range of industries. The key to saving your business is often about recognising signs in an early stage that there is going to be an issue and avoiding the creditor pressure that will arrive when cash flow starts to deteriorate.
The sooner you take professional advice from us, the better chance you have of saving your business. If you do believe as a Director of a Company that creditor pressure is mounting and you can’t see a way that it can be relieved, contact us today for free confidential advice. We will provide all our initial advice and guidance free of cost, so don’t feel as though you have to deal with all of the creditor pressure by yourself; take advantage of the finance services that are available to you.
What Happens when the Creditor Pressure becomes too much?
We are knowledgeable and carry experience in helping alleviate pressure that is placed upon businesses by its creditors by restructuring your debt.
How would I know when to take creditor pressure advice?
Creditor pressure is likely to be increased over an extended period of time. It usually starts with one or two payments to suppliers being delayed, and then usually HMRC liabilities are put to the bottom of the pile for payment. As soon as you stop making payments to your creditors when the debts fall due, the Company could be termed as technically insolvent. This highlights other matters that the directors should be aware of, such as wrongful trading. As a Director of a business you will hopefully recognise immediately when an issue arises, so as soon as your payment terms become stretched and HMRC contributions are no longer being fulfilled, it would be prudent to take advice from a Licensed Insolvency Practitioner.
Should I pay my trade suppliers instead of HMRC?
It often happens with trade suppliers that, since you need them for the day to day running of your business, they are the first to get paid. HMRC are an involuntary supplier and many see them as the last person that should be paid, or they think that they can get away with not paying them for a while. This is the most common misconception and with modern day real time assessments, HMRC will know immediately when your Company has missed one of its contributions or payments. HMRC are the most common creditors to apply pressure and have wider powers to recover their debt, including entering your Company premises and removing assets, even without a Court order. So, whilst it is tempting to pay everyday suppliers ahead of HMRC, it is a practice that is not recommended and could ultimately lead to the closure of your Company.
What rights does a creditor possess when pursuing the repayment of a debt?
If your Company is suffering from creditor pressure and your debts are increasing, some of your suppliers may take matters into their own hands in an attempt to recover their debt, which could include;
Appointing a debt collection agency on their behalf,
Sell their debts to a third party who specialises in pursuing bad debts, and
Enforce any security that it has over your Company’s property.
The right to serve a written notice for repayment of any loan plus accrued interest could issue a Statutory Demand which then could ultimately lead to the Company being forced into Compulsory Liquidation.
If you have any Financial Problems ... Contact Us Today