Business Rescue and Survival Guide Part 1- Planning for failure – strategies to anticipate and navigate financial challenges

Stay ahead of the curve – don’t let issues creep up on you

It is rare that directors or business owners wake up one morning to find that disaster has suddenly struck. Financial problems tend to be insidious. Indications that something is wrong may be more obvious to others than they are to you.

When you are busy firefighting and juggling creditors it is understandable that you might fail to spot the warning signs. If you are in any doubt please consider the following warning signs. Invariably the earlier you seek help the more that can be done to help and recognising warning signs early will give you the best possible chance of avoiding insolvency.

If any of these factors apply to you…..

 Your business is running out of cash
 You are thinking of injecting emergency funding or perhaps giving a last chance PG
 You feel like your business is being run into the ground
 You are concerned you might unintentionally do something that could give rise to director disqualification
 Or if business pressures are getting you down

then contact us for advice. At an initial meeting suggestions to ease cashflow, how you could safely inject working capital, how to avoid wrongful trading as well as how to protect your entrepreneurial future can be discussed – but don’t delay. If action is taken early there is often a good chance that your business can be saved. However, once decline has set in the chances of success become more remote and formal insolvency can end up being the only option.

Warning signs to look out for

It’s often said that the spectator sees more of the game. As specialist business rescue and insolvency practitioners we can spot the warning signs when you might be too close to see the dangers.
Use our traffic light systems below to self-diagnose your situation.

Carry on trading but keep under review
 Unable to pay creditors on normal terms but they are happy to extend further credit.
 Cannot pay the tax man on time but HMRC has agreed a payment schedule for the arrears.
 Exceeded your credit limits with your key suppliers and you are on stop but you are able to get credit elsewhere and overall keep your creditors level.

Proceed with caution
 You can only get credit from new sources and are using this to fend off existing creditors.
 Creditors are threatening legal action and tax arrears are mounting.
 You cannot accept new orders because you cannot buy essential materials or pay the overtime to satisfy it.

Stop trading or take professional advice
 You are on stop with most of your suppliers and cannot get more credit from anywhere.
 You are receiving final demands for payment and county court writs.
 The worry is giving you sleepless nights.

Free online Business Health Check
If you are still unsure of your next steps complete our free online >business health check – this tool will let you know if your business has what it takes to thrive and survive.

Look out for part two of our business survival guide coming soon!

For further information or to get in touch McTear Williams and Wood.