Creditors Liquidation

If you have money to pay to the company owners (solvent liquidation) please click here to learn about that.

Creditors Liquidation (owe and can’t pay) – the ramblings of slightly long in the tooth business owner and manager

 

The truth is that most companies that end up in insolvent liquidation is simply a case of bad luck. Many company liquidations are caused by events beyond the control of the company directors.

 

We are aware of the pressure that managing a business can have on its directors and the spill over effects on their families. This can be multiplied many times by trying to save a declining business.

 

From experience I can say that a discussion on the company’s current position and an explanation of the options available will lift the pressure at least enough to see the best way forwards. The opportunity for plates to stop spinning for a short while can allow longer term plans to be pulled together.

 

Running a business can become a matter of pride and to have to turn for help may seem like giving up. You may be surprised and pleased to hear that many who seek initial advice from us will not become a client of ours.

Why Choose the Liquidation.co.uk Liquidation Service?

 

We try exceptionally hard to avoid any surprises for company directors and shareholders. If a company does need to be liquidated there may be some personal impact.  Could a director be disqualified, could payments to directors need to be repaid the company?

 

By discussing our role as liquidators and potential risk areas for the company directors then at these issues can be discussed and the implications understood. Then an action plan agreed – no surprises for you or for us!

 

We liquidation service used technology to make it affordable, fast smooth.

 

Follow this link to read about our liquidation service. You can also read our liquidation guide here.

 

Or

 

Just get in touch and start the next stage of your business life. You’ll speak to me or one of our senior team who will give whatever to need to get you questions answers or to arrange a meeting.

Business man banner image

Why Choose the Liquidation.co.uk Liquidation Service?

 

We try exceptionally hard to avoid any surprises for company directors and shareholders. If a company does need to be liquidated there may be some personal impact.  Could a director be disqualified, could payments to directors need to be repaid the company?

 

By discussing our role as liquidators and potential risk areas for the company directors then at these issues can be discussed and the implications understood. Then an action plan agreed – no surprises for you or for us!

 

We liquidation service used technology to make it affordable, fast smooth.

 

The search engines like what we do, you can search “liquidation service” and see how what they think. Or follow this link: liquidation service. You can read our liquidation guide here.

 

Or

 

Just get in touch and start the next stage of your business life. You’ll speak to me or one of our senior team who will give whatever to need to get you questions answers or to arrange a meeting.

Got a question? Give a call or send us a message...




How Much Will a Creditors Liquidation Cost? Who Pays?

 

The costs of liquidation will be paid for from the value of “stuff” within a company. If the company can’t pay is it common for company directors or shareholders to pay.

 

If neither can pay, then it is likely that the company will end up in a court liquidation. That is handled by the government.

 

Most liquidators quote a price to put a company into liquidation. Then accept that if no other money can be raised by selling assets or collecting debts that the liquidator will be paid no further fees.

 

Cost of a liquidation must be agreed by those owed money.

 

At Liquidation.co.uk costs to put a small company into liquidation are from £2,500.

Company irector considering liquidation for her company

What Do We Know About Business Difficulties?

 

As an insolvency business we have been around for over 40 years. For 20 of those years I have been in charge. We’ve had our ups and downs over those years. It is still true that we’ve certainly needed some good fortune to keep everything in order.

 

I’m certainly no business genius and both insolvency and rescue work are based around support structures and routines that find problems and work to put solutions in place.  We will always try to present company directors and shareholders with as many options as possible.

 

We don’t help those that look to abuse the UK insolvency system. Our clients are honest, hardworking and capable; which is how we consider ourselves.

 

It would like to chat about your company’s position we would initially suggest setting up a call at a time to suit you. This could as quick as 5 minutes or as long as you would like. If you’d like to then we can set up a meeting at a convenient location for you.

 

Depending on both the size of the company and the number of directors such a meeting can include family members who may be affected by the outcome of the company’s position.

Some Examples of Where Things Can Go Wrong in Business

 

  • Temporary or longer-term spells of ill health of key staff
  • Dispute with customers
  • Poor treatment by larger companies
  • Not fully understanding the (unbelievably complex) UK tax system
  • Not fully understanding how to get the best from your bookkeeper or accountant
  • Internal dispute between directors or shareholders
  • Managing staff – I won’t say any more on this
  • Loss of focus by key staff; often looking at new areas of business
  • Non-payment of money due by customers
  • Changes in economic or political circumstances
Formal desk meeting 3 people

Should You Borrow Money Before Taking Advice? Is There a Hole in the Bucket?

 

If investment in a company comes at the right time the effects can dramatic. To bring it in at the wrong time can be as painful as it could have been dramatic. An investment must come with a definite plan to address the reasons why a business is in need of investment.

 

This is why we talk about the hole in the bucket.  A bucket leaking water (cash) that has more water poured into it will look better in the short term. The water will continue to leak unless the hole is closed – the business problem is solved. The invested cash will therefore disappear.

 

Call me a soppy git if you like but it always sad to see borrowing taken by companies as a last resort without taking advice first. Why; because that borrowing often comes with a personal guarantee to pay the borrowing back.  The potential implications of a personal guarantee are often not fully understood. A personal guarantee without a charge on a home does not mean that the home is not at risk. Understanding the options may just help to make a decision that doesn’t come with a sting later on.

 

The availability of funders of last resort has increased over the last few years and borrowing may be the solution. We’d recommend talking to someone before making the final decision. This could be with us or maybe your company accountant. Please give yourself the chase to consider all options to move forwards.