If you are experiencing business debt that is getting out of control, there are a number of options open to you.
One of these is putting in place a Company Voluntary Arrangement. This is a legal agreement between your firm and its creditors concerning the amount of money you will pay back and when the payments will be made.
This type of solution can be the perfect way of getting to grips with your enterprise’s financial problems and avoiding corporate insolvency.
Of course, your organisation must fulfil a number of criteria in order to be eligible for such a solution. This is where it can pay off to come to a firm such as us here at Cooper Matthews. Thanks to our experience in the field, we are able to advise you concerning what the best options for you are.
You might want to consider a Company Voluntary Arrangement if you believe that your firm has a viable future but is simply suffering from temporary cash flow problems.
From the point of view of those who have lent you money, such solutions can be preferable to you going bankrupt, as they will get more money this way.
So, in certain cases, this type of agreement is beneficial to both the companies involved and their creditors.
If you do enter into such a legal bond, you will agree to repay a fixed amount that is lower than your actual outstanding debt. Repayments are calculated on a monthly basis and are designed to be affordable.
Often, around 45 per cent of debt may be written off during the course of such an agreement.