By Mr Bankruptcy
29th August 2019
When a business is in financial difficulty the transition into insolvency can sometimes be swift. As a business owner, you need to be aware of the early signs to look out for that could indicate that your business is at risk of becoming insolvent.
What is insolvency?
A business becomes insolvent when it can no longer pay its debts when they are due or it has more liabilities than assets.
When a business finds itself in this situation there are several options available to it that can either allow the company directors to try and rectify and take control of the financial situation or to provide time while plans to sell the business are made.
What can cause a company to become insolvent?
There can be several changes that can seriously impact on the financial situation of a business and potentially lead to insolvency:
Signs that a business is in distress
Being aware of some of the causes of debt can help you look for signs that the business may be in trouble. The Institute of Chartered Accountants in England and Wales (ICEAW) suggest the following can be signs that a business is in distress:
If you think your business is in this situation it’s important to take prompt action. Seeking advice quickly can help prevent the situation getting worse and allow you to determine the best approach to move forward.
James Rosa Associates
James Rosa associates is a firm of debt advisors and debt adjustors. Taking 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:
We are authorised and regulated by the Financial Conduct Authority (FRN665061) to work with clients to produce bespoke solutions to fit their specific circumstances.
Find out if you qualify for a free consultation
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 firstname.lastname@example.org 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.