Solvent Business Benefits
Solvent business is the state of being able to pay all your bills and outgoings, both in the short and long term. It means your company is operating healthily and, hopefully, can look forward to a prosperous future. We work with businesses who want expert advice on how to remain solvent when the threat of turning insolvent appears.
There are a multitude of benefits in staying solvent and taking measures to ensure that you overcome any immediate financial problems.
- The first is that you’ll be able to pay all your bills and still attract business. Once you become insolvent and are incapable of paying, you will have to cease trading and even make your staff redundant.
- Secondly, if you are looking to raise finances for growth or new ventures, banks are far more likely to lend if you are solvent and have a good financial track record. They will check closely to ensure you are able to pay back any loan.
- People are only likely to invest in your business or become shareholders if they are confident you are going to remain solvent and have the business management processes in place to cope short term liquidity issues.
- Having a record of solvency also makes things a lot easier if you are selling your company or acquiring other businesses to expand.
There are all sorts of issues that can have an impact on cash flow and begin to cause your business problems. Staying on top of these is vital. If your company is beginning to head towards a state of insolvency, the sooner you do something about it the better.
Talking to a licensed insolvency practitioner ensures you have the tools at your disposal to either implement a rescue strategy or start considering options such as liquidation.
Contact us today to see how our professional team of experts can help.