The best way to stop your business from going insolvent is to take advice from a licensed insolvency practitioner (“IP”) earlier rather than later. The facts an IP will need to know in order to help you are:
- What do you owe?
- What do you own?
- Will the business trade profitably in the near future?
Insolvency ends up falling into two types of processes.
The main process is deciding whether you are going to let a creditor (someone you own money) push you into insolvency, or whether you take charge and choose insolvency as the best outcome to solve a problem.
The simple fact is that no one sets out to become insolvent – it happens because the business does not make enough profit over time or the owners take out too much from the business. The latter happens a lot.
In either case, it is not easy to ask for help, and who should you trust? The law is a minefield and there a number of unregulated advisers out there who say they can help, but can’t.
A good starting point is asking a decent solicitor or accountant to point you in the direction of someone qualified, and most of the time a trusted adviser will send you to a Licensed Insolvency Practitioner.
TAKE ADVICE FROM A LICENSED INSOLVENCY PRACTITIONER (“IP”) EARLIER RATHER THAN LATER.
As Insolvency practitioners, we are intensively trained as well as carefully monitored to make sure we give solid, impartial advice.
We understand what can be achieved and everything that can’t – we can save a lot of wasted time and heart ache (and often wasted fees).
If you need advice, ensure you get it early on, and if you are unhappy with the advice you receive by all means opt for a second opinion.
If you are worried that your business is approaching insolvency, we can help. Contact us today.