When to speak to an Insolvency Practitioner

UK businesses are facing an increasingly tough time.  The soaring cost of energy and materials is putting businesses and their supply chains under pressure, and at the same time, consumer confidence has dropped, reaching an all-time low since records began in 1974.  The Consumer Confidence Index of the UK was 91.6 in October 2022, compared with 100.6 a year earlier and has been falling sharply since Summer 2021.

The recent collapse of Made.com and Joules show that financial distress can hit any business, no matter its popularity or size.  The BBC has recently been reported that retail businesses (in particular) face a difficult Christmas. 

If your company is facing financial pressure, it is important to seek professional advice from a licenced Insolvency Practitioner.  An Insolvency Practitioner can help you assess the financial position of the company and advise on how to move forward.

What is a Licensed Insolvency Practitioner?

An Insolvency Practitioner is a licenced professional who is best placed to help any business which is financial pressure.  They are experts in insolvency law and associated legislation and have a detailed understanding of the different procedures that can be used to help businesses recover. 

Insolvency practitioners must be properly licensed to undertake this type of work.  Being a licensed insolvency practitioner means being a member of a Recognised Professional Body (RPB) which has issued a license, authorising that person to act. 

When should I contact an Insolvency Practitioner?

Business owners and directors can understandably find themselves embedded in the day-to-day tasks of ensuring a business continues to operate.  It can therefore be difficult to decide when to seek professional advice.  If your business is showing any sign of financial strain, it is always best to seek advice at the earliest possible stage.  This is likely to mean that there will be more options available to the company than if the position deteriorates further.

How can an Insolvency Practitioner Help my Business?

An Insolvency Practitioner can help your business in many ways, by:

• Reviewing the company’s position and assessing the options available
• Preparing financial information and other documents for formal insolvency solutions
• Preparing financial information and other documents for informal payment plans
• Communicating with creditors and employees on behalf of the company
• Resolving disputes, whether trading disputes, or shareholder disputes

Where a formal insolvency solution is not appropriate (Administration, Company Voluntary Arrangement, or Liquidation) an Insolvency Practitioner can also help you to source funding or reach informal time-to-pay arrangements.

Help from Keywood Group

Keywood Group is a Licenced Insolvency Practice, and our team has extensive experience in advising business on their options and dealing with company closure.  Our friendly team is based at our head office in Birmingham, but we operate nationwide and offer face-to-face consultations notwithstanding your location.  

We are committed to providing you with clear advice from the outset and always ensure that you make decisions relating to your company based on full possession of the facts, and the implications of each option.  If you have any concerns regarding the viability of your business, then please contact us today for a no obligation chat about options available.