Advice Needed Urgently

[businessadvicepls]

Hi Guys,

Really looking for some wise words and advice. My business has been trading two years and thanks to the other director that was dismissed for gross misconduct a few months back I dont think I can sustain the business any longer.

There are business debts, mainly suppliers in the region of about £20k and due to non paying clients, am unsure that I will even be able to meet month end in paying staff this month.

I myself have plugged in about £100k to the company, appreciate that I will not see this back however on paper and in reality the business can go forward and make a good profit!

I have undertaken and paid alot of the debts myself for the business but am no longer in a position to do this any more

I wanted to know what my options are we've recently had baliffs into look at siezing goods and bills keep popping up from many months ago.

I sadly think it is time for the business to shut the doors but how do I go about this - is there any option that I could close it down yet trade myself under a new brand in order to keep an income and perhaps pay all the old debts off by agreement.

Any info would be very much appreciated as I'm running out of options. I have spoken with the Business Debt Helpline but all they seem to do is send paperwork out for me to read - where can i go to talk to someone and get things moving today?

Kathy

 

[markwalton]

You need to speak to your accountants - and an insolvency practitioner. I would avoid taking personal responsibility for the company debts (assume you are limited as talking about directors) as this will impact your personal credit rating.

If your situation is cashflow timing have you spoken to the bank - yes I know they don't appear to be open for business despite what they say!! Enterprise loan scheme is in theory a loan for viable businesses where there is limited or no security but a profitable underlying business.

I see many businesses set up "phoenix" businesses where 1 is closed and they open next day under newco running the same business.

Talk to your accountant - ask for a referral to an insolvency practioner.

Good luck hope it works out for you.

Mark

 

[imaggroup]

As Mark said, talk to your accountant and your bank, talk to your suppliers and let them know when you will be able to pay them etc, especially the ones that you rely on for future business.

As for non-paying clients I have on several occasions instructed my solicitor to send 7-day warning letters that further action will be taken if they fail to pay, generally this gets the bills paid without needing to take it further.

 

[Business Trouble Shooter]

Assuming after seeing your accountant, it is still legal for you to trade (ie you are not insolvent), then are you sure there is no way some of the problems can be sorted out one by one. I save a business once when the owner had totally run out of ideas and money simply because he was too close to his own business to see a way out.