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Is It Time to Engage an Insolvency Practitioner?


Is It Time to Engage an Insolvency Practitioner?

Why Would I Engage an Insolvency Practitioner?

Seeking the help of a licensed insolvency practitioner (IP) may very well prove to be a prudent decision when your business is faced with financial troubles, in which case it would be wise to take action sooner rather than later.  This is to avoid complications that arise from having insolvency proceedings forced on you, such as in the form of creditors taking action against your company by way of a Winding Up Petition, which could lead to immediate freezing of your bank account and your business being forced into compulsory liquidation.  Indeed, seeking help in the early stages of financial distress will afford you control over the process, whilst the professional knowledge of an IP will help inform decisions regarding the direction of your business even before it reaches the point of insolvency.  For example, sudden cash flow problems or unforeseen changes in your business’ circumstances – especially in light of recent events – could be taken as indications that a professional’s insight is needed to assess the current status of your company and whether or not it is in fact still solvent.  This will undoubtedly help inform certain choices concerning your business’ situation.  For instance, upon suspecting that your company could be insolvent, it is crucial that you halt trading immediately.  Continuing to trade with the knowledge that your business may be insolvent could result in accusations of wrongful trading and lead to liquidators taking disqualification action against the directors should your company later go into liquidation.

Appointing an IP will help alleviate such worries that arise at times of financial distress.   Following a professional examination on the state of your company and its operations, an IP will offer expert opinion on the possible plans going forward that will best support the improvement of your business in its time of recovery, whilst also working to satisfy its outstanding creditors.  It is an IP’s job to talk you through the options that are available to you, what these different courses of action will entail, and provide their expert advice on what is best for the safety of you and your business.  Even if your company is found to be solvent after an IP’s analysis, their guidance may still provide helpful insight into numerous matters that will benefit your business, whether this be advice on improving cash flow or suggesting repayment solutions to avoid creditors initiating insolvency proceedings against your company.

Completing a Financial Health Check

If you’re still unsure as to whether or not it would be appropriate for you to engage an insolvency practitioner, Voscap offers a free, 5-minute financial health check. This will help to assess where you stand and give you a better understanding of your options going forward. Alternatively, you can request a free business assessment and one of our experts will get back to you within 24 hours.

Engaging an Insolvency Practitioner

If you feel that your business’ current situation would benefit from an IP’s expertise, contact Voscap Business Recovery today and our experienced team will be happy to help. Call 020 7769 6831 or email help@voscap.co.uk.

About Voscap Ltd

Voscap’s primary objective is to save your business! Our team of experts’ knowledge in restructuring and turnaround assignments is invaluable when assessing the best option available to your needs. With experience spanning several decades, we have the skill and resources to provide viable solutions within all industry sectors. All organisations go through difficult times and we are here to help. From small to multi-million turnover businesses, we have dealt with the most complex of cases. We offer an initial free assessment in analysing your financial position and providing clear and precise advice making your experience a simple non-complicated process. Get in touch →

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