BUSINESS RESCUE

Helping Your Business Survive The COVID19 Crisis

There are many Government initiatives available on a national level to provide financial support and assistance to businesses and their owners during these troubled times. There are also some additional local authority initiatives running in certain areas. If your business has been adversely affected by the current Coronavirus pandemic we can help you to establish which initiatives you and your business will qualify for and what additional actions you may need to take to ensure your business is able to ride out the storm. These will include adjusting budgets and targets to reflect changing trading conditions as the pandemic progresses so that your business is well placed to benefit from the inevitable ‘bounce back’ that will happen once we are all able to return to a near normal existence.

How RBBC Can Help If Your Business Is Struggling

No business owner likes to admit that they are having problems paying the bills, but by recognising that there is a problem and asking for help you will actually be taking the first step on the road to finding a solution. You need to take that step as soon as you realise there is a problem with your cash flow. Don’t wait until there is not enough money to pay the rent or the staff. It may be that the business is profitable, but that the profit is tied up in customer invoices awaiting payment – in which case the problem is merely one of cash flow and can be solved in a number of ways; from invoice factoring to merely implementing a robust system for obtaining payment from your customers. However, it may equally be that you have lost sight of your budget, have not been hitting your sales targets and this has blown a hole through your cash flow which is unlikely to be able to be easily repaired. If this is the case we will need to sit down with you and fully assess the options available. These can range from cutting costs to additional borrowing or potentially a combination of both.

Rescue Packages

It is fair to say that there are more business rescue options available to a limited company or limited liability partnership than to an individual sole trader or partner. As a sole trader or partner (unless you are in a limited liability partnership) you are personally liable for the debts of your business. If you are unable to pay these debts you risk being taken to court, having your assets seized and potentially being made bankrupt by your creditors.

If you are facing a personal debt crisis there are charitable organisations like StepChange or Citizens Advice Bureau who can help you. They can make arrangements with creditors to give you time to pay and can also discuss other options with you such as a DRO (Debt Relief Order) or IVA (Individual Voluntary Arrangement). If you feel your business can be saved please call us. Our initial consultation is free of charge.

Please be aware that whilst limited liability will probably protect you as an individual from recovery action by business suppliers, your company’s bank are likely to insist on personal guarantees in respect of any loans, overdrafts or other financial assistance given to the company. It is therefore important to take independent legal advice before signing to personally guarantee a company’s liabilities in any way. You also need to be aware of the fixed and floating charge/debenture clauses that banks and other lenders tend to insert in the small print of any agreement as these could limit the options available to you if you find your business in need of additional financial assistance.

If your limited company is insolvent or facing potential insolvency we will enlist the help of a Licensed Insolvency Practitioner to help you to plan the best course of action. This may range from entering into Administration to considering a CVA (Company Voluntary Arrangement) or even CVL (Creditors’ Voluntary Liquidation). However, if it is felt that your business could potentially trade profitably again once the debt has been removed there are options available whereby a new company can be formed to purchase the assets of the old company. This is known as a Pre-Pack Administration arrangement. Please call us in the first instance to discuss your circumstances. There is no charge for our initial consultation.

BUSINESS START-UP SCENARIO

I have just helped a new limited company client to purchase and refurbish premises in Liverpool by writing their Business Plan and arranging the bridging finance, commercial mortgage and business protection they required.

FINANCIAL PLANNING SCENARIO

I act for a Limited Company Buy To Let property business and help them raise the funds required to purchase, refurbish and refinance residential properties. They are now on their third property with another waiting.

BUSINESS RESCUE SCENARIO

A limited company in the aerospace industry incurred significant set up costs and although it now had the potential to trade profitably, it was actually insolvent and cash flow was stretched to the limits. Read how it survived!

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Have any questions about our service? We would love to hear more about your business and help fulfil it’s potential.