Christopher Andersen
Written By Chris Andersen
Director & Licensed Insolvency Practitioner
July 18th, 2023

A Common Mistake

An increasing number of Company directors are finding it difficult to keep their companies afloat in this temperamental economic climate. A very natural reaction but an all-too-common mistake is to attempt to persist with the business and ‘trade out’ of financial difficulty.

This can, however, have devastating consequences not only for the financial position of the business but for the directors personally.
It is imperative that directors have a solid understanding of their company’s financial position in order to make an informed choice about the best course of action.

Our Advice to Directors

When directors become concerned that the company may not be able to avoid insolvency, they should immediately seek advice from a licensed Insolvency Practitioner (IP) to assess and discuss not just the company’s position but also that of each director.

On realising the company is insolvent, or may be soon, the director has various fiduciary duties and there are personal consequences arising relating to wrongful trading, preferences and transactions at an undervalue. Professional advice must be sought at the earliest opportunity.

Which Option is best for me?

The options that are available to you if your company is facing difficulty can be found in our services section.

Given our many years of experience, we can give a rapid assessment of your situation over the phone as well as advice on what you should do next. However, you may wish to find out more prior to getting in touch.

Our service descriptions are easy to follow and explain not only the circumstances which elicit the need for each service but also the timescales and steps involved when each process is carried out.

Free Business Review

As a business owner, you would be putting your business and yourself at risk by not seeking advice from a licenced insolvency practitioner at the first sign of warning.

We offer a free business review service for directors of companies who consider their company may be in financial difficulty. The service is designed to give directors a better understanding of the company’s financial position and the true extent of their need for concern.

Contact us to arrange your free business revue.