At Poppleton & Appleby, we specialise in recovery advice and support for small to medium-sized limited companies, in the Midlands and beyond. We understand what it is like to run a business of this size and how important the right business insolvency advice at the right time can be to Directors when facing financial difficulties.
Where we recommend a formal insolvency process, the insolvency advice we give explains why we are doing so and the options that are available to Directors. The advice we give will be clear and straightforward, setting out what we believe is right for the company and other stakeholders affected by these decisions.
We assist the company in retaining control of the decision-making process wherever possible, while also being sensitive to the position of creditors who may hold security against it and who need to be involved and agree to any suggested insolvency process.
We have strong relationships with both national and regional lenders, who may already be providing credit facilities to the company. We are regularly asked by these lenders to give a second opinion where other insolvency advisers are in place and even to take over an assignment where the lender is not comfortable with the existing adviser.
What Factors Can Cause Financial Distress?
There are many factors that can cause financial distress, and the earlier these are recognised and insolvency advice is sought, the better the chances of successfully turning things around. Clearly cash flow issues are a major concern, as is HMRC Debt and slow paying debtors. But, what about the more structural things that can cause these issues? These can include:
Increased competition. When this happens, over supply is often the result, where only the fittest survive.
The Value of Sterling. This has declined in recent months, meaning that exports are cheaper and imports more expensive. So firms that import a lot of their raw materials experience an increase in costs that can work its way through to reduced profits. Lower profits are often the first sign of problems, and following on from that come cash flow difficulties, pressure from creditors.
Increased Wage Costs. In particular the national and minimum wages. These increases have to be absorbed and some industries are particularly susceptible, including retail and leisure.
Increases in Rents and Rates. Expected or otherwise any increase in overhead will affect cash flow.
The sooner that any of these factors are identified, the easier it is to seek insolvency advice from an insolvency practitioner. We can help with:
- Business Recovery and Turnaround
- Cash Flow Problems
- Business Finance Solutions
- Negotiating Payment Plans
- Creditor Pressure
Our Business Insolvency Advice Can Help
There is no doubt that the pressures noted here will contribute to a growth in financial distress, and increase the likelihood of insolvency. If our insolvency advice is sought at an early enough stage, administration, liquidation and closure can be avoided. We can advise on restructuring to help turn things around. Click on these three stories for more:
Do You Need Business Insolvency Advice?
If your business is facing financial difficulties and you believe insolvency is around the corner, please contact our insolvency experts, or call us on 0121 200 2962 for an initial discussion. The sooner you get in touch, the more we can do to help.
For more information about our business recovery and insolvency services please contact us.