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Archive for April, 2011

Bankruptcy decisions should not be taken lightly

Saturday, April 30th, 2011

If you are facing serious debt problems, you might be wondering whether or not you could benefit from bankruptcy as a way of resolving your issues. After all, living in the shadow of unmanageable debt is stressful and can make day to day life hard to bear.

However, such a decision is not to be taken lightly. It has a profound impact on your activities and is only one of a number of possible solutions that you should consider. Indeed, other forms of debt management may be far more appropriate for you.

Here at Cooper Matthews, we provide a range of services and can help you find the ideal debt management plan.

In general, bankruptcy is seen as a last resort for resolving personal insolvency problems and is used when there is little hope that the money can be repaid. In order to proceed, applications must be made at a local county court and, if granted, they result in all debts being removed.

Of course, this comes at a price, and if you succeeded in a bankruptcy application, all your assets would be reviewed and anything of value may be sold. This could include your property and cars valued at more than £1,500. Also, if you could afford to do so, you would have to make payments towards your debt for three years.

Meanwhile, for a period of 12 months, you would not be able to act as a company director.

As you can see, this is not a form of debt management to be taken lightly. To find out more about this, and our business debt services, have a look around our website.

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The economy is not out of the hot water yet

Wednesday, April 27th, 2011

The banking crisis that precipitated the economic difficulties seen over recent years in the UK and many other countries around the world may have started back in 2007, but its effects are very much still being felt.

Many companies, particularly smaller ones, report they are struggling to secure the credit necessary to continue trading as they would like and the business landscape remains particularly tricky to navigate.

Not only this, but consumers’ finances are being stretched. Not only is inflation rising, but wages have frozen for many people and in some cases they are being reduced. On top of this, anyone who relies on savings income is still being affected by low interest rates. Together, these factors, combined with many others, mean individuals are more reluctant than usual to part with their cash, making the task of running an enterprise even more difficult.

So, if your firm is struggling with business debt, it is by no means alone. Therefore, you should not feel as though you are isolated in your efforts to deal with your company financial problems.

Heading an enterprise is tough at the best of times, but currently it is proving almost impossible for many people. If you think you could benefit from business debt services, you should get in touch with us here at Cooper Matthews.

We have many years’ experience of dealing with issues like this and can help you find a solution that works best for you. Hopefully, with some of our expert guidance, you will be able to deal with your business debt successfully and continue on to more prosperous times.

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Getting the experts in can lessen debt troubles

Sunday, April 24th, 2011

Running a company is a difficult task and it requires a great deal of skill and determination. So, if you are in charge of a company, you no doubt have a raft of abilities and strengths.

Indeed, you might personally oversee many elements of the organisation, from finances to production, marketing and much more. However, there may be one area that you are ill-equipped to deal with appropriately and that is the management of business debt.

In the tough economic conditions being seen at present, it is easy to find that your enterprise is rapidly heading for company debt problems. In many industries trading levels remain subdued and on top of this, borrowing conditions are tight.

Rather than attempt to navigate your firm through such choppy economic waters, it may pay off to bring in the experts. After all, being able to delegate in this way is also a crucial skill in the world of business.

And the fact is that by using specialists such as us here at Cooper Matthews, you can feel assured that you will achieve a more favourable outcome than if you tried to tackle the problems yourself.

There is virtually nothing our team do not know about business debt, and so they are perfectly positioned to provide you with the best solutions around.

To find out more about our business debt services, simply have a look around our website or get in touch. Using such provisions could be the best move for your enterprise.

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Debt management plans can help in difficult times

Thursday, April 21st, 2011

If you have been struggling to keep up with your repayments to creditors, you might be experiencing considerable pressure. After all, there is only so long such scenarios can go on for before there are serious consequences.

It is therefore vital that you address the situation and take action that will help you and your company in the long run. However, knowing which route to take can be tricky. After all, you are bound to have heard about various different options for those facing business debt issues, and it can be tough to know which one to go for.

Well, one possible solution involves a debt management plan. Roughly speaking, this is an informal agreement between a debtor and their creditors that enables them to reduce the amount they pay each month. The aim is to negotiate an amount that can realistically be paid off.

It helps borrowers begin repaying their creditors without having to borrow more, thus potentially avoiding a situation where finances spiral out of control.

However, this approach to business debt lacks formality and has no fixed term. Meanwhile, because you still have to repay the full amount, the length of the agreement can extend for many years.

Generally speaking, such an approach is used where the total personal debt is less that £18,000, or when only short-term breathing space is needed until business begins to pick up.

To find out more about a debt management plan, simply have a look at our website or get in touch.

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Cooper Matthews Can Help Convert a Personal Guarantee into a Bank Loan

Thursday, April 21st, 2011

Cooper Matthews, a leading provider of business debt advice and solutions for small to medium businesses requiring financial advice, can help a company director convert a personal guarantee into a bank loan should they go into liquidation or pre-pack administration.

Cooper Matthews is a business debt advice specialist that can provide support and guidance to small and medium size companies. Cooper Matthews can help any company with an annual turnover of £50,000 to £10 million, and can provide business solutions, such as winding up petitions, voluntary liquidation and time to pay arrangements.

When a business goes into liquidation or pre-pack administration a company is required to fulfil the personal guarantee which is commonly signed by the company director. Cooper Matthews have successfully negotiated with banks to help companies in similar predicaments to convert their personal guarantee into a loan.

A spokesperson for Cooper Matthews commented: “Over the years we have helped many of our clients convert their personal guarantee into a business loan which has helped a company director to personally repay any company debts. Our services can also help to ensure personal assets are not seized by the bank. We have a range of highly qualified business advisers that have experience in business financial problems and are dedicated to ensuring our clients receive the best service for their needs.”

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Pre pack administrations explained

Monday, April 18th, 2011

You might well have heard of pre pack administration. Such solutions to business debt problems can have positive results, and they have been used by many firms since they were introduced.

However, despite being aware of their existence, you might not know exactly what these provisions are. Well, they refer to a process that occurs when a company has become insolvent. After this point, a new enterprise is formed that buys up the assets of the old business.

In this way, rather than putting more resources into an organisation that is failing, directors can use these funds to establish a new company that has more positive prospects.

Because of the fact that this can in many ways be seen as a new enterprise rising from the ashes of an old, unsuccessful one, the process is also known as phoenixing.

When directors do this, the liabilities of the old organisation, including its business debt, remain tied to it and the whole thing is usually liquidated.

The process is referred to as a pre pack administration because the administrator involved packages all the firm’s assets and completes the sale prior to the creditors’ meeting. Indeed, it is not necessary to involve the creditors of the failing business with the negotiation.

Of course, this is just one way of approaching business debt. Here at Cooper Matthews, we deal with a whole range of approaches, so to find out more about how we may be able to help your firm have a look around our website or get in touch.

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IVAs can lessen the pressure

Friday, April 15th, 2011

Experiencing business debt can be extremely stressful, and this is particularly the case if your own possessions are at risk if you do not keep up with your repayments. In general, it is not advised to leverage credit against your own assets in order to gain additional cash for your firm for this very reason. However, times can become tough and sometimes this is the only option to keep your enterprise afloat in the face of company financial difficulty.

But if you are facing pressure because of personal debts taken out to help fund your company, you should not panic. There may be ways of addressing the situation that can take the heat off a little and ensure you do not face having to lose pieces of your property.

For example, depending on your circumstances you might be eligible to take advantage of an individual voluntary arrangement (IVA). This is a legally binding agreement between you and your creditors. It allows you to make an offer to repay as much of the outstanding debt as possible. This can either be done in one lump sum or in reduced monthly payments over five years.

If your offer is accepted, your creditors will agree to stop any additional interest or late payment charges for the duration of the deal and they have to write off any outstanding debt after the term has finished.

So, if you are experiencing company financial difficulty and the business debt you face is risking your own possessions because it is registered against you, IVAs may be a good solution.

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Ignore debt problems at your peril

Tuesday, April 12th, 2011

If you are experiencing business financial problems, you are by no means alone. Many entrepreneurs around the UK and elsewhere are being stretched to their limit. For this reason, you should not necessarily feel as though you have failed.

However, if you do not take the appropriate action to deal with your business debt now, you are storing up trouble for the future. It can be tempting to simply ignore the difficulties for as long as possible. After all, you have built up a reputation you want to uphold, and admitting you have a problem might be something you are desperate to avoid.

Also, you may well have many people relying on you. As well as any staff members you employ, there are also your family members to think about.

But if you do not address the issues, you will suffer in the long run. The more you delay seeking business debt analysis, the more severe the difficulties will become. For example, if you are unable to keep up your repayments to creditors and you let the situation slide, your levels of business debt will continue to rise, eventually leaving you with a potentially impossible task to deal with.

Therefore, you owe it to yourself, your workers and your loved ones to be proactive and take matters in hand. And you will find that as soon as make such steps, you begin to feel less pressured and more able to cope.

There is nothing worse than living in the long shadow cast by unmanageable debt.

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The business equivalent of bankruptcy

Saturday, April 9th, 2011

These days, problems with business debt are by no means uncommon. Indeed, many enterprises are struggling to remain afloat and some are failing as a result of the pressures they face.

Sometimes when this occurs, people mistakenly refer to the companies as going bankrupt. In fact, this precise term is only used to describe an individual person who has no chance of paying back the money they owe.

In contrast, when businesses go to the wall as a result of company financial difficulty it is said they are in liquidation. Meanwhile, there are different types of liquidation that organisations enter.

Sometimes compulsory liquidation occurs. This is when enterprises are ordered by a court to be wound up because their levels of business debt are so out of control. Such action is taken after one or more of the firm’s creditors feels compelled to force the firm to crease trading. They then present a petition to wind up the firm.

This is the closest thing to business bankruptcy.

One the other hand, there is voluntary liquidation, which occurs when the directors of an organisation, with help from a licensed insolvency practitioner, put the firm into liquidation or wind it up.

If you are keen to find out more about these scenarios, you can have a look around our website or get in touch with our friendly and professional team. We have years of experience in such matters – as well as other consequences of business debt – and there is nothing we don’t know about them.

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When a pre pack administration might be useful

Wednesday, April 6th, 2011

Knowing what to do when your firm is going through a period of particularly troublesome business debt is difficult. Indeed, because of all the technical issues involved, it can be very tricky to come to the best conclusions yourself. This is why it pays off to use expert help such as that provided by us here at Cooper Matthews.

One option that may be suitable in some cases is a pre pack administration. Such an option is generally considered when a company is at risk of failure because it is suffering serious financial difficulties as a result of debts incurred in the past or because of unfavourable lease terms. However, despite these issues, the enterprise at its core is successful and capable of generating a profit.

In such cases, it is often thought that the business is worth saving.

By using a pre pack administration, the assets of the firm can be valued and agreed before the administration process takes place and can be bought up and used by the directors of the organisation as part of a new company.

Such solutions can mean that creditors stand to gain the maximum possible return, while the new enterprise has the best chances of success. Indeed, this means of dealing with certain forms of business debt can be a very useful tool.

If you think your company might be able to benefit from this strategy, or indeed any other type of business debt services, don’t hesitate to get in touch. You can also find out more by browsing our website.

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