Corporate Insolvencies are increasing and the warning signs should be spotted early to ensure businesses can be turned around and move

forward to success.

With the current economic climate, warning signs within the business should not be ignored as this could mean that the leap from insolvency to success will shorten.

Taking advice early may mean that liquidation is not the only option available for the company. At liquidation.co.uk we provide advice on those hard to make decisions. Business owners should bear in mind that insolvency is not the end of the road but can act as a springboard to future success.

Inability to obtain credit

The downturn in the economy has seen many lenders refusing or restricting their funding to many businesses.

Rising costs and falling demand from consumers has put increasing pressure onto businesses and the refusal of lending from finance companies and Banks has seen many businesses fall victim to the “credit crunch”.

Warning signs of insolvency

There are two main tests of insolvency, the first being an inability to pay debts as and when they fall due and the second being that the liabilities of the business are higher than the worth of the assets.

The main warning signs to look for are creditors placing a stop on credit accounts, loss of customers with no strategy to replace them, HMRC debt going unpaid or constantly being paid late, business owners putting increasingly more funds into the business and constantly “juggling” the business creditors.

Should any of the warning signs be spotted, businesses need to act early and seek advice.

If problems are found early, the number of options available to the business may be higher. For example a turnaround specialist could advise and assist to rescue the business either in its current format or in a new structure.

Should you have any concerns please do not hesitate to call on 0800 054 6589.