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Posts Tagged ‘company cash flow problems’

Disentangling complex financial webs

Saturday, October 15th, 2011

Even quite a small company can engage in quite complex financial deals. That is one reason why business debt services operate from a more difficult starting point that those services which assist individuals with debt problems. Furthermore, company directors can also have personal debt issues, if they have got loans secured on their property. It all means that there can be a lot of technical work for an insolvency specialist to perform.

At Cooper Matthews we are well accustomed to coping with complexity. This means that there is no need for a firm to panic if its affairs are somewhat muddled. Moreover, our expertise means that we can work out the best ways of protecting directors and the organisation from suboptimal outcomes.

A business cash flow problem can arise from a diversity of sources. It might develop because other firms make late payments. It could be the consequence of the termination of a large contract. It could be that a director has a protracted period of enforced absence. Or it might be that a big supplier goes to the wall. However, in many cases problems stem from more than one thing going wrong at once.

Working out the best way to address a company cash flow problem can be a time-consuming and painstaking activity. It takes patience, experience and skill. If a business is going through a very tough period it is most likely to have a better future if it seeks out specialist assistance from an organisation with the right blend of qualities.

business debt services, business cash flow problem, company cash flow problem

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UK growth is likely to remain weak

Sunday, October 9th, 2011

The Organisation of Economic Cooperation and Development (OECD) are usually upbeat about the prospects of its member economies. However, they have recently predicted negative growth in Germany and no growth in Japan. With regard to the British economy, they have suggested that outright recession will be avoided in the next few months. Nonetheless, they make clear that the lacklustre recovery is likely to continue to grind on in its unimpressive way.

At Cooper Matthews we appreciate that the next few months are likely to be tough for a diversity of small and medium-sized businesses. Obviously they do not have the protective resources of large corporations and find it harder to get credit from the banks. However, if a small concern does build up significant business debt in these terms it is not necessarily the end of the road.

A business cash flow problem does not mean that a company cannot hope to be a viable concern in the future. It is a sign that something has gone wrong, but it is not evidence that the failure is permanent. The difficulty may have arisen in a plethora of diverse ways. If a calm head is retained and the correct assistance sought, the unfortunate situation may well be sorted out and creditors appeased.

Any solution has to fit the nature of the circumstances in which the distressed business is in. Analysis is necessary to explore the various alternatives. Sometimes, there are more options than others. In certain cases, a time to pay arrangement will do the trick.

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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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Starting over is possible

Friday, September 9th, 2011

Sometimes it is very easy for the director of a distressed company to lose heart. Debts have accumulated and there does not seem to be a way out of the difficulties. Years of hard work seem to have been for almost nothing and severe stress can be felt. However, if a director seeks business debt analysis from a reputable provider, positive things may yet be salvaged from the situation.

At Cooper Matthews we can look into a company cash flow problem and help work out the extent of the difficulties facing a firm. Even if the situation is very bleak, it is possible for a director to launch a similar firm with some of the old firm’s assets. This must be done in full accordance with the entire relevant legislative framework.

When a new company takes over some of the assets from an old company, the new entity can be described as a phoenix business. The procedure can only be performed if a director has not been disqualified from doing so. An individual who has become bankrupt on a personal basis is also ruled out. Similarly, those facing a bankruptcy restriction order cannot move forward with the scheme.

These restrictions mean that the approach should only be undertaken with care and with the best possible advice and assistance. It is also imperative to treat customers as well as possible at the different phases of the situation. Attempts to avoid regulation are illegal and ill-advised.

Business debt analysis, company cash flow problem, phoenix business

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What a Winding Up Petition Means for your Business

Wednesday, June 15th, 2011

If you have a company cash flow problem, then it is time to call in the experts. For many, all is not lost and it is not too late to save or rebuild your business. Cooper Matthews can help you with your business refinancing and restructure in a number of ways. For others, sadly, it may be the end of the line and Cooper Matthews can also help you to face this.

Compulsory liquidation, also known as winding up, can be instigated by your creditors when you owe more than £750. Winding up petitions are now used more and more frequently when business debt is outstanding and needs to be paid. Obviously, this isn’t a very pleasant process and the consequences for your business are serious.

You must make sure that you act within 7 days of receiving the winding up petition by contacting a licensed Insolvency Practitioner. Cooper Matthews are based in Leeds, but we work with local Insolvency Practitioners across the UK, so wherever you are we should be able to help.

Although they are serious, a winding up petition needn’t be the end of the road and we can discuss alternative solutions with you to manage your business debt and get your company out of the black hole. One option could be to start a Voluntary Liquidation yourself, which will give you more control over the rest of the process. In all cases, it is essential to contact an Insolvency Practitioner like Cooper Matthews to get some business debt advice as soon as possible.

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How Phoenixing Can Help Your Business Rise from the Ashes

Thursday, June 9th, 2011

If you have company financial problems and feel like your business is about to go under, all is not lost. There are still several options available to you to help you start again. Pre pack administration is now quite common practice and involves selling off all the assets of the company immediately after it has entered administration. This usually allows the business to continue trading under new management and often saves the jobs of those who are already working there.

Phoenixing is a form of pre pack administration whereby the directors of the original company start a new company and use it to buy the original company’s assets. This kind of company debt rescue ensures that a maximum staff can be retained as the management structure stays the same. The former company’s staff are also protected by TUPE law, so redundancies are minimised as much as possible. Obviously, it also allows you to keep trading, rather than watching someone else turn your business around and keep the profits. If you have spent time building a strong company brand, then you don’t want to lose this to somebody else. You can also remain in the same premises if this is financially viable for you.

If you think that pre pack administration or phoenixing sound like a practical way forward for your company, then Cooper Matthews can tell you all you need to know. With a free initial consultation, we will look at your business issues and discuss with you the best way forward.

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Minimise Company Cash Flow Problems with Business Debt Analysis

Tuesday, May 3rd, 2011

Although the short term future can often seem bleak in times of financial instability, the long term prospects of struggling businesses could be predicted, professionally ratified by our own financial analysts and expertly handled in lieu of the determined outcome.

Business debt advice in the form of professional business debt analysis can help our clients see more clearly through the mists of hard times. It could be that company cash flow is being impaired by a factor unidentified by those within your company, and this is where our expert service really comes into play.

Business debt analysis is a fairly simple premise for laymen to get their heads around. Our expert financial advisors will take a forensic accountancy approach to your company’s financial records, making comprehensive reports along the way to help you and the relevant interested parties in your company better understand the scope of company debt, potential future paths to solvency and the extent of threat posed by bankruptcy.

In those happy circumstances where company cash flow problems can be relived, our business debt analysis will serve as a reminder and guide during future times of hardship, hopefully helping you and your staff to spot potential fiscal woes before they become a damaging issue.

Seeking business debt advice isn’t just for those in dire straits. We offer our services to companies and individuals of all sizes, types and business models to make sure you always have helping hand when debt worries loom.

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Could you benefit from a Company Voluntary Arrangement?

Monday, February 28th, 2011

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.

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If you are in business debt, you are not alone

Thursday, February 24th, 2011

Running a company is never easy. There are so many things to take into consideration. Not only do you have to concentrate on providing excellent products or services, but you must also bear in mind employment laws, taxation issues, and marketing and financial planning, among other things.

And the economic situation at present is not making entrepreneurship any easier. Indeed, the aftermath of the recession is still being felt across many sectors, and the government’s austerity package, designed to reduce the fiscal deficit, is also having a dampening effect on spending.

Not only this, but the VAT rise last month has put additional strain on enterprises across the country, as consumers are even more reticent about making purchases.

Meanwhile, banks and other lenders have not yet begun extending credit as freely as they did prior to the credit crunch.

So, if you find you are experiencing business debt, don’t panic. You are by no means alone. Many organisations are finding they have a company cash flow problem. The important thing is not to let your pride get in the way.

By seeking advice for your business financial problems, you are much more likely to be able to remain in operation. Of course, in the worst cases this is not possible. But by using experts such as us here at Cooper Matthews, you can rest assured that the best solution will be found.

And remember, there is nothing to be ashamed of if your company is in trouble. Like many other organisations, you may well simply be the victim of tough trading conditions.

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Premium personal debt advice

Wednesday, February 9th, 2011

Downturns in business are often most acutely felt by business directors, sole traders and self-employed individuals. Their business debt is often compounded by a personal aspect, as they have often personally secured financing loans to alleviate business cash flow problems and allow their endeavor to be launched successfully. For example, if you gave a bank or other financial institutional personal guarantee to repay debt on your business then you will most definitely be held personally responsible for that debt in the event that it cannot be repaid.

Similarly, if you took debt in your own name but invested it in keeping your firm afloat, then you are also liable. Self employed sole traders can also find themselves in hot water, as in most instances they are personally responsible for the debt which they accrue for their business in the event that it fails.

There are several options available for people in this situation, including debt consolidation loans, individual voluntary arrangements, debt management plans and even bankruptcy arrangements. At Cooper Matthews we know that a healthy work/life balance is often nigh on impossible for sole traders and company directors, due chiefly to the considerable personal pressures which they find themselves under as they strive to protect their business by accruing personal debt, and we are ready to help.

A vicious cycle often occurs as most sole traders rely on their company for wages, so therefore when the company is in debt, so too is the individual, making it impossible to match repayments. Cooper Matthews can help these individuals to avoid situations where their personal health is adversely affected by the strain of debt problems. The first step is to contact us today.

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