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Posts Tagged ‘business debt services’

The Merlin Agreement might not work for all

Friday, November 25th, 2011

The Bank of England has announced that the price of credit for small firms might increase in the final months of 2011. The coalition government’s Merlin Agreement with the banks does not appear to be working for firms of all sizes. Some banks are allegedly making lending decisions on a sector-based basis, instead of looking at the specific context facing the individual enterprise. The banks have confessed that they might not reach their target for lending to small businesses.

At Cooper Matthews we know that the lack of accessible and affordable credit for small businesses can have a significant detrimental impact upon their chances of making progress. Coupled with an unhelpful economic climate, it can make it harder for good businesses to make sustainable profits. If credit is obtained in today’s environment, it may be done in such a way that personal debt issues are made worse if things should go wrong.

It is common for small firms to need every opportunity they can get. If events turn against them, it is imperative that they obtain accurate advice fast. Business debt services can be of significant assistance in dealing with creditors. However, if an organisation does collapse then the directors may need help with personal financial problems.

Director finance advice is essential to minimise the damage incurred to the personal financial status of a director. In most cases, avoiding bankruptcy makes a great deal of sense. Business director debt can be dealt with, but it should be remembered that the issues are more complicated than those involved in sorting out debts derived from personal expenditure exceeding income.

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Personal debt can be a troubling problem

Thursday, November 10th, 2011

These days, personal debt issues are commonplace. Just because someone is a company director does not mean they will not be part of this wider trend. However, a company director may well have used loans to support their business in its infancy. This might not be a problem in good times, but if the business gets into serious financial difficulty it could well prove to be a very serious matter.

At Cooper Matthews we admire individuals who are willing to take risks to make a success of their entrepreneurial activities. However, if these entrepreneurial activities do not succeed then the risks taken may come back to haunt indebted directors. Due to the fact that there will be a complexity in the situation, beyond the capacity of an ordinary debt specialist to deal with, we know it makes commercial sense to use high quality business debt services.

Director business debt can feel very unfair. When one has worked so hard to build a dream, facing up to it can be painful. Nonetheless, to avoid worst case scenarios, it is critical to deal with it promptly. A range of options with different strengths and weaknesses need to be reflected on. These include things like an Individual Voluntary Agreement and bankruptcy.

Bankruptcy can preclude someone from being a director in the future and it should be viewed as a last resort. Director finance advice can be used to weigh up the benefits and drawbacks of bankruptcy and the available alternatives. Many successful directors have had personal debt problems in the past.

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European economic instability continues

Tuesday, November 1st, 2011

While the economic crisis has been affecting business activity on a global scale, it has had a particularly significant impact within the boundaries of the Euro zone. Even if political elites manage to get to grips with the sovereign debt problems of southern Europe, the influence they have had has been severe and wide. Several countries outside the Euro have been experiencing stagnation, which is in part the consequence of the collective failure to respond swiftly and successfully to the danger of a second banking crisis.

At Cooper Matthews we appreciate that the problems facing British business are not all home-grown. Particularly since the collapse of Lehman Brothers, the British economy has been adversely affected by difficulties connected with events often beyond the control of the government and the Bank of England. The consequence has been a collapse in consumer spending.

The British consumer’s capacity to spend has been reduced by inflation that has been persistently above the 2 per cent target. The Consumer Price Index measure has often been twice this. Meanwhile, growth has disappointed and unemployment has mounted. In these circumstances, business debt services have been obliged to help a diversity of struggling firms.

A business financial difficulty can arise very quickly in difficult economic times. However, there is nothing to be gained from abandoning a positive mind set. Many ultimately successful firms have endured periods of serious difficulty. It is worth consulting experts to ensure that a tricky period of trading does not lead to a winding up petition.

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Monitoring and prompt action works

Tuesday, October 18th, 2011

When a business is in a degree of trouble, it can distract those responsible for it from being vigilant. Sometimes individuals react to mounting pressure by working harder instead of working smarter. They can suffer from serious stress and may be very reluctant to talk about their difficulties. Such a response is understandable, but it is not the most effective way of turning things around.

At Cooper Matthews we have a lot of experience and know those directors who seek assistance from business debt services relatively early give themselves and their firms a better chance of coping than those who procrastinate.

It is not easy to be calm when the loss of a business is a possibility. Years of hard work are at stake. It is also common to deny the reality of the situation. It is hard to accept that something which might have been a brilliant idea might not have proven to be quite so brilliant in practice.

If action is taken in good time then salvaging the situation is more likely than if debts are permitted to stack up for whatever reason. It is critical to be decisive. By getting the right help at the right time, company recovery may be on the cards. Avoiding a winding up order may be the first step in the road back to eventual prosperity.

Many now successful firms have flirted with disaster. It is imperative not to be fatalistic or deluded when times are very tough. It can be tricky to do the right thing, but not doing it usually has worse consequences.

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Business debt services can help with the debts of directors

Monday, October 3rd, 2011

Sometimes a director gets credit for a firm by offering a personal guarantee. Provided a business goes well, this does not constitute a problem. However, if the business is the major source of wealth for a director then the liability issue can cause stress and hardship. Business financial problems can become acute personal financial concerns.

At Cooper Matthews we know how difficult it is for individuals who have given there all to make their business work. When company debt problems become more than just a company issue, it is understandable for despair to creep in. Nevertheless, there are options out there which can limit the damage.

When a business folds and when a personal guarantee has been given, a creditor will want what they are due. To give them what they want, a director may choose between a debt management plan, a consolidation loan, an Individual Voluntary Agreement (IVA) and bankruptcy. Each solution has its conditions, good points, and bad points. Hence the options require careful consideration and consulting with experts makes a lot of sense.

For example, bankruptcy can be suitable for some individuals, but it limits the capacity of the individual to do as they please in the future. It is also the case that it is necessary to pay fees in order to go bankrupt. Some people may wish to avoid the unfortunate and unfair stigma which is still sometimes attached to bankruptcy in Britain. While bankruptcy has an appeal in that it seems to cut short the discomfort, it is something of an option of last resort.

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British economic recovery in choppy waters

Saturday, September 3rd, 2011

British economic growth in 2011 has been lacklustre to say the least. The American economy has not been performing well and the southern European countries have significant sovereign debt problems. With the international economic situation precarious, it is unsurprising that the Office for Budget Responsibility has stated that its 1.7 per cent growth forecast is looking like an unrealistic target. Hence some more British companies will sadly need business debt services in the months to come.

At Cooper Matthews, we recognise how much business performance is influenced by factors external to a firm. Company debt problems can develop in a diversity of ways, but when times are tough a bit of bad luck can easily worsen.

It is important for entrepreneurs to seek help in sufficient time. It is easy not to act and to hope against hope that something will turn up. Such behaviour is seldom rewarded, particularly when the economic climate is less than helpful. There is often nothing but additional trouble to be gained by delay. At the same time, it makes sense to remember that all is not lost. If one gets specialist assistance, company rescue is frequently possible.

Company financial matters are even more complicated than personal debt issues. For a struggling business with significant debts, soldiering on without external help can be an extremely costly error. If an Insolvency Practitioner with knowledge of the sector assesses the situation, then answers to pressing questions can often be found.

business debt services, company debt problems, company rescue

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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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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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