Companies Facing Insolvency: Wind Up or Invest?
After struggling and working hard to build a company, it is painful to realize that circumstances have perhaps led you to the brink of insolvency. There are many decisions which you must make when faced with the potential for going under, but there is no need to face them alone. A licensed Insolvency Practitioner or Business Recovery team can help you determine whether or not your company can be saved.
If you really fear that you may need to go into Administration or Bankruptcy, then there is no reason to find investment capital or even attempt to do so at this time. Your business credit rating probably wouldn’t support a loan from any reputable lender so the first step to take is to determine the actual state of your business financial situation.
A quick on-line request for a business recovery test is the first step to take. An IP can almost immediately determine whether or not your company is viable and what you can do to salvage it. There are just a few questions to answer and a representative will usually get back to you within a day or so with further questions and advice. Only after discussing your business in depth can a real plan be made.
Finding an investor or making further investments yourself may be a practical plan if your debt is not too severe and there are outstanding invoices which can be collected on. To borrow a cliché, you don’t want to whip a dead horse so it is imperative to get professional analysis before sinking any more money into a company that may indeed be bankrupt.
Just bear in mind that by law you cannot wind up a company that is insolvent. At this point there may still be solutions, but when debt is not totally out of control then there may not be a need to be bankrupt or wind up. In the end, make sure to get sound advice from a reputable IP before jumping to conclusions. It might just be possible to salvage everything you have worked so hard to establish.
Bio: For sound advice when experiencing business debt, Real Business Recovery can offer honest and reliable solutions. There may be an alternative to insolvency, but act quickly before it is too late.