How to avoid liquidation
I can’t pay back my Bounce Back Loan and my company is drowning in debt!
It’s not just Bounce Back Loans that need repaying, many businesses have built up arrears with rent, VAT, PAYE, Corporation tax as well as supplier debts.
It’s no surprise that certain industries have not bounced back and in some cases haven’t generated revenue since last March.
Closing the company via a liquidation is the last option and not to be taken lightly.
So what things can I do to prevent me from liquidating?
One option is to try and renegotiate terms with your creditors over a longer period of time to ease any Cash Flow problems short term.
Take a look at yesterday’s video if you want more information on how to restructure your Bounce Back Loan
If you owe money to HMRC you may want to consider a Time To Pay Arrangement which will give you extra time to pay your arrears. I know that HMRC may offer you up to 2 years to pay backdated tax. They will try and get you to commit to a shorter payback, if you don’t ask you don’t get.
Are you paying too much when it comes to other finance, loans, invoice factoring, business credit cards? It’s worth looking to see if there are better terms out there for your business.
These are all informal restructuring options that may give you that extra breathing space you need.
I hope you find the video useful 🙏
All the best,