STOP – PAUSE
Closing your company may not be the right option for you.
2 issues I speak to people about every single day:
There are lots of people out there whose businesses haven’t got back to work fully and money is tight.
Just because you are struggling to pay these bills now doesn’t mean you must close your business via a liquidation.
Here are 2 tips:
Speak to HMRC; they are very flexible right now and I know in most cases you can restructure your HMRC arrears over 2 years. Equally, if you cannot afford to pay HMRC anything right now ask for another 3 months’ grace before you start paying them. Yes, this will incur interest but it will give you some time for your cash flow to recover.
Bounce Back Loans repayments can be delayed and the loans can be extended. The Pay As You Grow option allows you more flexibility in paying back your loan.
- 10-year extension
- Capital payment holiday for 6 months (you will still pay interest)
If cash flow is still tight you can take a full payment holiday now and wait to see how things go for you.
For example, if you took £50k it’s going to cost you over 6 years around £930 per month, if you use the Pay As You Grow option over 10 years that monthly payment will come down to £561 a month and it will only cost you an extra £2500 over the term.
Both of these options will give you and your company some much-needed breathing space before making a decision on your company’s future.
If your business is struggling right now and you don’t know how it will survive it’s always best to get advice early and understand all your options.
I hope this has been helpful and if you have any questions please let me know.
All the best,
1st Business Rescue