Many directors are finding that their businesses are not performing as well as they once were, which is leading to heightened worry about liquidation and insolvency. The truth is that you really don’t need to worry. 

Worrying about business debt? 

We speak to many individuals, including one man bands, builders, contractors and many others who are all feeling stressed, leading to them losing sleep. 

When your business is in debt, it is completely normal to feel worried about what might happen next or whether your business will be able to survive. 

Business debts since Covid-19

We’ve been offering even more business support since Covid because the type of person that got in contact with us changed. We have always been used to dealing with directors in distress due to business debt. 

But since the pandemic, we’ve been contacted by many directors who have paid their debts on time, never failed to pay suppliers but now they are worried. 

The truth is that what happened with the pandemic was completely out of our control. So of course you’d be worried if your business has been running for years, you’ve always worked hard and now you’re struggling to make ends meet. 

What UK businesses are dealing with right now is extremely tough and can really take its toll on your mental wellbeing. 

Worrying about liquidation?

One client who contacted us is a contractor within the financial services sector. This client has been losing sleep for months due to changes brought around by the pandemic. The client has enough money left over to pay some of the bounce back loan off, but they will have to enter a liquidation process

The reason why this client will have to enter an insolvency proceeding is because they do not need their company anymore. Changes to IR35 rules mean that this client would be better off closing the company. Find out more about closing a limited company due to IR35.

The client cannot just strike off the company due to being unable to pay off all of the bounce back loan and not having the money personally to pay it off. They will have to seek insolvency advice and meet with an insolvency practitioner

The main message that we want to put across is that many directors that come to us for advice have absolutely nothing to worry about. While it is a shame that people who have worked hard on their businesses are now having to close them, the process doesn’t need to feel like a horror story. 

It is very important that you seek advice early if you believe you may have a problem. This will help you to assess where you are and what your options are. 

Liquidation as a process is nothing to be scared of, it can take time, but as long as you have acted responsibly, you really don’t need to worry. Once you have closed your business successfully, you’re free to enjoy life and not worry about business debts

Please get in touch and we’ll come back to you
without delay.

Call 0808 506 2246
Text 07717 738 167
Complete a Free Online Enquiry