By Mr Bankruptcy
29th April 2020
In March, The Independent newspaper reported that almost a fifth of UK’s small businesses could be gone within a month due to the financial crisis caused by Covid-19 restrictions. This is despite the billions of pounds of support being made available by the UK Government and the changes made to insolvency legislation to help company directors stay afloat during lockdown.
Now we know the extent of the crisis, I believe the Independent’s prediction is overly pessimistic; companies are adapting, improvising and overcoming to a greater extent. However, these are undoubtedly tough times for any business, large or small, and a business owner should be prepared to take action or seek help if necessary to survive.
Temporary changes to Insolvency legislation
To help directors avoid insolvency, temporary changes have been announced and it would be a good idea to be familiar with them:
The next steps if your business is struggling
The current circumstances are unique but the main causes of insolvency remain constant. We’ve previously discussed why businesses become insolvent, including the signs to watch out for, and many of these still hold good. If you’re concerned that you’re in this situation, here are some essential keys steps to take:
If we’re going to turn the economy around as quick as possible once the pandemic restrictions start to ease, it’s vital that as many businesses as possible survive the coming weeks, or possibly months, of restricted trading, and that could be down to owners and directors taking early action.
James Rosa Associates
James Rosa associates is a firm of debt advisors and debt adjustors. With a supportive and friendly approach, we offer a full range of advice and professional services to individuals and business owners/directors facing unmanageable debt or involved in civil or commercial disputes.
Our services include:
● Insolvency support
● Negotiated settlements
● Personal assisted bankruptcy
We are authorised and regulated by the Financial Conduct Authority (FRN665061) to work with clients to produce bespoke solutions to fit their specific circumstances.
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If you want to deal with an unmanageable debt, or bring a dispute to a swift and cost-effective resolution, contact James Rosa Associates, ring 0845 6807217 or email email@example.com to find out whether you qualify for a free consultation.
Please be advised that all views expressed in these posts are those of the author and not of James Rosa Associates ltd.