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Posts Tagged ‘company financial problems’

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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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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When your boss declares company financial difficulty

Thursday, July 21st, 2011

Business debt affects everyone, not just the owners and shareholders. They may stand to lose their stake in the company, but they’ll probably still have other assets and most shareholders in bigger businesses have other sources of income. Savings and investments could be lost and bosses may also face disqualifications from future directorship, but it’s often the workers on the ground that stand to lose the most when corporate insolvency comes along.

The impact of a company financial difficulty on the workforce is often worsened by the element of surprise. The directors almost certainly knew that the business had been in trouble for a while, but staff may have had no inkling that there were troubles brewing. After all, if you’d been told, you might have started looking for another job or at least sought some kind of guarantee that your pension was safe.

The first thing to do when your boss tells you that the company is facing corporate insolvency is stay calm. It’s naturally to feel angry, upset, and more than a little frightened, but everyone else will be feeling just the same and keeping a clear head will help.

Even if you’re not a union member, they may still take you on and give you the information and support you need to get through such a difficult time. Your rep or local union office should be your first port of call.

If the loss of your job means that your own debts will become too heavy a burden, remember that assistance is available there too. Debt consolidation and other management methods can help get you through the difficult times ahead.

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Pacify Creditors with Sound Business Debt Advice

Friday, May 6th, 2011

Business creditor problems can stem from any number of circumstances; bad judgement, rising costs, illness and good old fashioned rotten luck tend to be key players. A lot if our clients are still suffering the ramifications of the recent recession, with fresh company debt problems heaped onto the pile. So, when business creditor problems are overshadowing your company, what are the options?

Individual Voluntary Arrangement (IVA)

This type of payback system is ideal for company debt problems that are currently just getting shy of being manageable. An IVA allows you to pay back debt in voluntarily devised monthly amounts for a period of up to five years. IVAs are not suited to all financial situations, but could make all the difference when you predict creditor debt potentially spiralling out of control. The IVA is a legally binding agreement between you and your creditors.

Administration Order

In laymen’s terms, think of an Administration Order as a “pause” button. It allows your company an allotted amount of breathing space in terms of creditor repayment, time to manage your debts following a business debt analysis, potentially restructuring your company or attempting financial recovery free from creditor pressure.

Business Refinancing

This can take numerous forms, including Asset Refinance, Invoice Financing, Payroll Finance and Trade Finance.  A thorough business debt analysis from our expert advisers can help us identify – together – the most workable refinancing solution for your company.
Have you taken a look through our Case Studies and other blog entries to help you better understand the options in terms of relieving the burden of business debt?

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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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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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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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What are the debt solutions for the self-employed?

Wednesday, March 30th, 2011

These days, a rising number of people are self-employed. Perhaps the most obvious reason for this trend is the fact that as a result of the economic problems, the jobs market is extremely competitive and there are far more candidates than positions.

However, if you plan to take this course of action, you should bear in mind that there are certain elements of risk involved.

For example, your income is by no means guaranteed, so you may find it harder to plan things in advance. Also, you might have to accrue a certain level of debt and this can lead to problems if you are not careful.

Eventually, you might find that the business debt you have accrued is too great and you are unable to pay it off. Getting to this point can be frightening and you might not know what to do.

That is why you should come to experts such as us here at Cooper Matthews for business debt advice. Our team can guide you through the necessary steps and help minimise the difficulties you experience.

Broadly speaking there are two main options when it comes to resolving self-employed business debt. One of these is an Individual Voluntary Arrangement. This is a legally binding agreement that is designed to help you repay your debts. It allows you to make an offer to repay as much of your debt as you can either in a one-off sum or monthly payments over five years.

If it is accepted, creditors agree to stop any additional interest or late payment charges and they will write off any debt left over when the agreement has finished.

Meanwhile, the alternative is a Debt Management Plan. This is an informal agreement between you and your creditors that allows you to pay a reduced amount each month so that the payments fit within an affordable budget.

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