Business and Company Insolvency
Business Insolvency
What constitutes Business Insolvency?
Perhaps the easiest way to tell if a business is facing business insolvency is if they are struggling to keep up with payments to creditors. What does this mean; if a supplier is due to be paid on 30 days and that payment is not made on time then, technically this is the sign of business insolvency.
You may argue that nearly every company is insolvent on this test! However as a company director it will become clear where a delay in payment is necessary rather than voluntary and if the delays in payment are beginning to creep up in duration.
It is important to remember that this requirement to pay creditors on time also applies to HMRC!
If you feel that your company is facing business Insolvency then please take a look at your options explained within this website or feel free to give us a call.
Company Insolvency
What constitutes Company Insolvency?
Perhaps the easiest way to tell if a company is facing company insolvency is if they are struggling to keep up with payments to creditors. What does this mean; if a supplier is due to be paid on 30 days and that payment is not made on time then, technically this is the sign of company insolvency.
You may argue that nearly every company is insolvent on this test! However as a company director it will become clear where a delay in payment is necessary rather than voluntary and if the delays in payment are beginning to creep up in duration.
It is important to remember that this requirement to pay creditors on time also applies to HMRC!
If you feel that your company is facing company bankruptcy then please take a look at your options explained within this website or feel free to give us a call.
Comments are closed.