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Archive for August, 2011

Significant business debt does not preclude future success

Tuesday, August 30th, 2011

When a company is suffering from severe financial distress, the outlook can seem very bleak. If a major contract has fallen through or if a large supplier has folded, it can feel like the business is no longer capable of generating wealth. Until all the options have been explored, it is unwise to succumb to too pessimistic an outlook. If the right kind of advice and assistance is obtained, the future might not be as dark as it can seem.

At Cooper Matthews we know that various options can give embattled company directors a new chance. Furthermore, many directors who have had failing firms have gone on to prosperous futures, sometimes with businesses very similar to those which hit trouble. Nor is there anything illegal or ethically questionable about processes like phoenixing and pre packing. If these processes are carried out properly it is quite possible for the new enterprises to develop healthy cash flow.

It might seem a little odd to think about success when a business is in considerable difficulty, but the right attitude can really pay off. It is understandable to adopt fatalistic views when one is receiving bad news or urgent demands to pay that cannot be met. Nonetheless, if the goal of eventual success is forgotten it only makes the work which needs doing more arduous and uncomfortable.

It does make it slightly easier to think that many others are unfortunate enough to currently be in similar circumstances. Furthermore, the fact that many highly successful individuals and companies have been through this trying phase can provide genuine motivation.

business debt, phoenixing, pre packing

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Company directors and the self-employed can need specialist help

Saturday, August 27th, 2011

Personal debt issues can sometimes be sorted out with the help of various agencies, but the debts accrued by company directors and self-employed individuals can be troublesome, and their complex nature means that genuine expertise is required to address them adequately. Business debt services are certainly best placed to assist with director business debt.

At Cooper Matthews we recognise how easy it is for directors to get into financial difficulty. When a company is growing, it may not seem such a bad thing to link your financial future closely to that of your business. If the business requires extra capital for investment, it is understandable to make a pledge to a bank, for example. Similarly, self-employed people with reasonable aspirations are often tempted to make investments in equipment and so on via loans.

When an enterprise stops performing well, perhaps simply due to external factors, it can be difficult for those who have tied themselves to the fate of their companies without ensuring any separation between the two. It might be that a personal guarantee has been given, or it could be that a credit card bill cannot be paid. Either way, taking director finance advice can help show there is light at the end of the tunnel.

There is no point in individuals blaming themselves for business failure. Multitudes of small firms fold, especially when the economic climate is not helpful. However, it is only prudent for unfortunate directors to get the best advice to untangle their affairs.

business debt services, director business debt, director finance advice

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Business debt services can work in awkward territory

Wednesday, August 24th, 2011

Some of the processes involved in coping with the debts of a business are very complicated. If they are not undertaken with due care the consequences can be highly undesirable. For example, the process by which assets are moved from a failed company to one with a similar name and scope is a delicate one. A director of the former enterprise can be part of the running of the second one, but only if certain criteria are met.

At Cooper Matthews we have the ability to provide pertinent advice in what can be a difficult area. The process above involves the creation of what is know as a phoenix business. It will not work if a director is prohibited from acting as they wish by legal constraints. If phoenixing is carried out in an incorrect manner, creditors can derail the process.

The rules are tight because otherwise the system would be open to exploitation. Without the 1986 Insolvency Act, unscrupulous directors could hide from liabilities while obtaining their former assets at low cost. As it is, directors are barred from running the new company if a disqualification or bankruptcy restriction order has been made against them. Neither can an individual covered by personal bankruptcy act as a director of the second company.

All these technical issues mean that the best available advice and assistance is necessary to steer things through properly. A liquidator is obliged to ensure that the assets of a firm are not sold for an unfair amount.

business debt services, phoenix business, phoenixing

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Company debt rescue for small firms

Sunday, August 21st, 2011

The British economy contains a multitude of small enterprises and they do a lot for the country in terms of wealth creation and the provision of employment. Unfortunately, they are often particularly exposed when the economy is performing sluggishly or when there is a great deal of uncertainty about the country’s future prospects. If a supplier goes bust, if a worker falls sick or if a significant order is lost, a small company can soon be on the brink.

At Cooper Matthews we are very conscious of the particular pressures that small businesses face. Furthermore, we appreciate that the difference between success and failure can be very slight for firms of this sort. We know that many businesses that receive the correct advice in time can emerge as profitable concerns of the future.

It is important for small companies to get specialist business debt advice which is tailored to their specific circumstances. An Insolvency Practitioner has the ability to come up with crafted responses to particular problems. Company recovery is not likely if a thorough assessment is not carried out or if an ‘off the peg’ measure is implemented. The main thing is that the job is carried out properly so that the firm in question has an interval in which to get its house in order.

Sometimes, it is sadly not possible to prevent a company from being liquidated. However, former directors can still bid for assets which used to belong to their enterprise. Getting the right advice can thus enable some good to come from undesirable situations.

company debt rescue, business debt advice, company recovery

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Some debt advisers won’t touch business debt

Thursday, August 18th, 2011

There are many agencies out there which can help an individual deal with their business financial problems. Some of them are even free. However, most of these agencies are only equipped to provide advice in relation to personal debt. Company debt problems are much more complex than those associated with balancing an individual’s earnings and spending patterns. Hence it is imperative for directors of distressed companies of all sizes to seek out experts to assist them.

At Cooper Matthews we have considerable experience in providing comprehensive assistance to businesses in difficult situations. We appreciate how hard trading can be in harsh economic climates and understand how it can be tempting to call it a day. However, in many cases a firm’s fortunes can be turned around if the right measures are taken in time.

The main reason why some debt advisers refuse to help people with debts derived from business activities is that they lack the skills to do so. Even the debts associated with a small operation can be of a complicated nature. Furthermore, the paths out of the difficulties are not always as straightforward as they are for individuals.

A company can emerge from a very awkward spot if it can take advantage of the various options available to it. Which options are suitable can be related to things such as turnover, business type and employee numbers. It is obviously the case that some of these factors are simply not relevant for individuals with personal debt dilemmas.

business debt, company debt problems, business financial problems

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Is independent action on business debt advisable?

Monday, August 15th, 2011

There are some companies who have the internal capacity to manage their financial affairs when they are in deep trouble. However, many businesses are not able to do so for a diversity of reasons. They may make costly errors and the consequences can be enduring. A misjudgement can lead to a winding up petition which may lessen the chances of eventual company recovery.

At Cooper Matthews we are able to provide distressed firms with an Insolvency Practitioner. They have the expertise to deliver high quality assistance and have sufficient sector-relevant knowledge to obtain excellent outcomes.

Some company directors may be reluctant to use outside experts. They might believe that an in-house solution is best because of their determination to keep their problems private. Furthermore, they might believe that the fortunes of the company will lift because of external factors and may think that using an Insolvency Practitioner is an admission of defeat. This reluctance to receive help could leave a company very exposed to real failure.

In many economic sectors, the virtues of outsourcing specialist activities to external organisations have been demonstrated. It is not unusual for companies to trust that accountants will be responsible with sensitive information. Insolvency Practitioners work to the highest standards of confidentiality and it makes commercial sense to permit them to do what they do best.

In contrast, if a struggling company chooses to go it alone it is increasing the odds against it surviving its tricky period. Business debts can be very complicated and it is advisable to use suitable methods to get them addressed.

business debt, winding up petition, company recovery

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Flexible options for companies enduring tough times

Friday, August 12th, 2011

The British recovery from the Great Recession of 2008 has been uneven, and growth has been anaemic. Enterprises of different sizes have struggled to cope in difficult trading conditions. When a firm is in a great deal of trouble, the pressure mounts and it is easy to forget that it may have a productive future ahead of it. What is needed is expert business debt analysis and then a careful consideration of options, such as a company voluntary arrangement (CVA), can take place.

At Cooper Matthews we have the experience and expertise to help businesses who have been going through awkward times. While pressurised staff in a struggling firm can find it hard to see all the available options, the greater distance that we have permits us to take a more accurate view of the situation than they can frequently manage to do.

Debt analysis can pinpoint whether or not a company is likely to be a viable concern in the future. If a company is in serious difficulty, it may not have to become insolvent. A flexible arrangement may be a great solution. It will not cure all a firm’s problems quickly, but it can provide a foundation on which management and employees can build to turn things around.

When a business is really suffering, one of the resources which it needs most is the time to sort out its affairs in an orderly fashion. Management issues and dealing with serious debts cannot be resolved hurriedly. A flexible arrangement can provide a troubled enterprise with the space it needs.

business debt analysis, company voluntary arrangement, CVA

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Facing up to business debt

Tuesday, August 9th, 2011

It is amazing how highly intelligent individuals can sometimes refuse to look at growing personal debt. Part of them simply hopes that the problem will disappear of its own accord. Another part of them wants for something ill-defined to turn up. However, while they delay, their bills accumulate and the interest on their loans takes its toll. It can be a while before some of them make the necessary adjustments and a few unfortunate people leave it too late.

At Cooper Matthews we are aware that the odd entrepreneur also refuses to respond properly to mounting difficulties. It is understandable that individuals struggle on when they have put so much in to a company. However, a SME which may be a viable business can fail if company debt problems are not addressed in time.

It is thus a priority to keep tightly focused on how a company is faring. A business is too valuable a thing to waste. After scrutiny, if it seems that a firm is in trouble, it is best to seek specialist assistance. Instead of despairing, it is advisable to get the perspective of an experienced outsider. They can assess the situation in a clear way and may be able to offer solutions with reference to how to get out of the mire.

Many British businesses are understandably finding it difficult to make profits in this protracted period of economic uncertainty. However, there are ways forward for many embattled businesses if they are lucky enough to have access to high quality information and relevant advice with regard to their business financial problems.

business debt, company debt problems, business financial problems

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Why business debt services are so worthwhile

Saturday, August 6th, 2011

Any entrepreneur knows how hard it can be to build up a business from scratch. In terms of hours and intensity of work, an entrepreneur invariably puts in an incredible amount of effort. Even when the company grows and delegation becomes easier, the workload can be very demanding. Not wasting all this labour is one why it is necessary to pull out all the stops when a company financial difficulty is so severe that it threatens the very existence of the firm in question.

At Cooper Matthews we know how much work is put into firm creation and development. Hence when we are contacted in the case of an enterprise with a cash flow problem, we are fully committed to providing the most useful assistance possible. If a company rescue is successful we are satisfied on a number of different levels.

Setting up any company is a big risk. For that risk to yield significant rewards, it is vital for all concerned to put in an enormous quantity of work. A wide variety of things can put those rewards at risk. In a small firm, the illness of an important team member can cause problems. A supplier going into administration can also trigger a big difficulty. Even a gradual dip in consumer demand due to inflationary pressures can have a major adverse impact on company fortunes.

Once an enterprise is in trouble, things can go from bad to worse with rapidity. Working harder rather than working smarter is an understandable if counterproductive response.

Seeking experienced advice can be a shrewd move.

business debt services, company financial difficulty, company rescue

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Old British attitudes to company debt rescue

Wednesday, August 3rd, 2011

Unlike in the United States, where the ups and downs of entrepreneurship have long been well understood, there has not always been a healthy attitude to company difficulties in Britain. There used to be a common feeling that failure or underperformance reflected badly on the individuals concerned. However, that situation has been transformed due to cultural change and a related appreciation that many good firms require business debt advice from time to time.

At Cooper Matthews we have witnessed the fading of the remnants of stigma associated with company debt problems. The severity of recessions in the last thirty or forty years has underlined the fact that a business is not entirely the master of its own destiny. When an enterprise is encountering difficulty it simply needs assistance and if any feeling of culpability hinders accessing the help then it must be put aside swiftly for the good of the firm.

The roots of old British attitudes to debt are not as important as the fact that those outmoded views have largely been destroyed by economic and cultural change. Despite the attitudinal change, the banks are not being over-generous to companies with debt problems. This is because the banks want to rebuild their empires on sounder footings after the crisis two years ago. It can be hard to get flexibility from them in these austere times.

Where banks will not deliver the necessary help, it is up to other specialists to fill the gap. Such specialists can provide the high quality advice that can help a company emerge from a crisis.

company debt rescue, business debt advice, company debt problems

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