Last Updated on: 22nd November 2023, 05:45 am
When facing financial issues, some business owners try and hide their situation to maintain their reputation in order to avoid losing clients. But most of the times this ends up being a mistake, because the debt keeps growing and growing until the situation becomes intolerable. And when they finally seek for help, it is a little too late. When you realise your company is having a hard time because it is not able to pay creditors, it is vital to take action as soon as posible. And an Insolvency Practitioner is exactly the kind of profesional you need to turn to to fix the problem
Where can I find the best Insolvency Practitioners?
When looking for an insolvency practitioner, it is essential to choose a reputable professional who is both licensed and experienced. An insolvency practitioner follows the statutory regulations laid down in the Insolvency Act 1986, and the Insolvency Rules 1986, and must comply with Statements of Insolvency Practice. They are authorised to act in relation to an insolvent individual, partnership or company since they have undergone the relevant training and qualifications to allow them to practice. A licensed insolvency practitioner (IP) carries out a wide range of duties in relation to insolvent individuals and companies. Depending on the insolvency procedure they may be required to negotiate with creditors with a view to rescuing the business, or at the other extreme, take over complete control of the company prior to closing it down.
If you need to find a reputable Insolvency Practitioner in the UK, the best place to start your search is the Internet. You can find online plenty of Insolvency practitioners in London which also operate from offices around the country, and they will be able to help your company with bankruptcy, restructuring, or the Insolvency Voluntary Arrangement.
Another good option to find a reputable Insolvency Practitioner is turning to recognised government websites, where you will be able to find information on local insolvency practitioners in your area. These sites are a reliable source for business owners who want to hire a reputable organisation in the UK. And, of course, the word of mouth is a great option to find an Insolvency Practitioner for your company when it is facing financial issues. If you’re experiencing problems, talk to a business colleague about your situation. They may know someone who experience a similar situation –or maybe they have even been there themselves, who can suggest you a good insolvency practitioner in the area.
How much does it cost?
An Insolvency Practitioner’s (IP) fees vary quite considerably depending on the kind of industries they work in, the cases they work on, the complexity of any given case and their location. For this reason, it can be difficult to say how much the average IP’s fee will be, so you must ask for an estimate of their costs when you discuss an appropriate course of action for your business. Most Insolvency Practitioners will offer a free consultation designed to discuss your options, they should give you a full breakdown of the costs involved and the service they provide.
Why should you reach an Insolvency Practitioner as soon as possible?
If the unability to satisfy the debts is a one time thing and the company was successful and profitable prior to the current situation, consulting a licensed Insolvency Practitioner at an early stage offers the best chance of survival. So, if you are not insolvent at the moment but your bussines is starting to face some challenges concerning to its finanicial situation, it would be a good idea to start thinking abour getting some advice. Insolvency Practitioners offer advice to directors when their business are experiencing temporary cash flow problems, and this might be a great way to deal with the situation without compromising your company’s reputation.
In addition to helping you deal with cash flow problems, an insolvency practitioner can also offer advice to help improve the financial situation of your company. By giving you suggestions to deal with company cash flow issues in a better way; telling you what kind of practices can lead your company into insolvency and how to avoid them; or offering financial counseling about bank-related actions – company loans and personal guarantees, alternative finance options, and so on.
How is an Insolvency Practitioner going to help your company?
An Insolvency Practitioner will assess the financial situation of your company and help you to decide and pursue the best course of action for your bussiness in order to avoid legal an financial consequences depending on your particular situation. They can do this by guiding you to arrange a creditors’ voluntary arrangement with the company’s creditors or by helping you with negotiations with HMRC.
