What are the key issues which can arise when a business is not managed correctly?
If a struggling company is heading towards administration, stakeholders will often appoint insolvency practitioners from established companies such as Moorfields in order to ensure that their interests are being sufficiently represented.
However, if the business has been poorly managed in the weeks and months leading towards this point confidence in management can be undermined.
So, what are some of the key issues that insolvency advice specialists may review in this situation?
Many rented business premises will have complicated building regulations that can be easily forgotten about if a business has other things on its mind. This could be an expensive mistake as it could come back to haunt you down the line and create extra problems for stakeholders and insolvency practitioners alike.
When a business starts to struggle in a wider financial sense, basic elements such as ensuring the rent is paid in full and on time can be overlooked. Companies may try to negotiate specific arrangements that suit their status, such as changing their rental terms to allow them to pay on a monthly basis rather than quarterly. If a company then moves towards administration, the timing of any appointment may prove critical to the insolvency practitioners ability to continue to trade and preserve assets.
VAT is one aspect of business that companies can fall behind on quite rapidly if they take their eye off the ball, even a little. The company’s history of payment with HMRC may impact significantly on the ability to agree terms or strategy with creditors.
Businesses that are struggling in the current financial climate can benefit from seeking advice sooner rather than later. Corporate recovery specialists can be pivotal to determining the best route to take as they are able to provide intelligent advice that is tailored to your specific sector, as well as strong leadership qualities.