Published: 09/01/2024 By Hannah DuncanSeeking the advice from an expert, such as an Insolvency Practitioner is far less daunting than most business owners think. We often get comments like “I wish I had come to you sooner”, “no more sleepless nights!”
We understand the pressures of running a business, the stress it can cause including the external influences such as the cost of living crisis which can seriously rock the boat. But how do you know when things are bad enough to need the assistance of an expert?
There are a number of warning signs that would suggest a business could be in distress, however, seeking early advice from an Insolvency Practitioner can mean complete failure could easily be avoided. A red flag for a company not doing so well could be lengthening creditor days, which may mean a sign of cash flow issues. This in turn leads to a company less able to pay its debts when they fall due, suggesting a state of insolvency. Other red flags are debts to HMRC, excess stock, minimal or no investment and the more obvious rising debts and lack of sales.
If a company has a competent accountant, they can quickly notice that the business is facing financial difficulties and suggest the director seek advice. An Insolvency Practitioner will also be able to provide insights into the viability of the business, seeking advice as soon as any worries or concerns arise tends to result in more options and better outcomes for the business. An Insolvency Practitioner will always try to turn a business around rather than pursuing a formal insolvency route. The quicker a potentially failing business gets in touch with an expert, provides them more time to take remedial action to resolve the issues; this can include an action plan to move forwards which will hopefully result in a successful turnaround. If things are left too long, without the help of an expert, further problems can occur, resulting in a rescue and recovery of the business becoming less likely and often a formal insolvency procedure will be the only choice.
Therefore, as soon as any sign of financial distress is noticed, a call to an expert is needed. An early call could result in tailored advice including a plan to get the business back on track without any further intervention required.
At turpin barker Armstrong, we are always happy to have an informal chat over the phone, video chat or in person at one of our offices to talk through your current business scenario. Check out our business turnaround page or take our insolvency test . We are always happy to talk when you are free, all conversations are confidential with no obligation.
Call us on 020 8661 7878 or email firstname.lastname@example.org