0800 9700539
Show Menu

We have a great business, but cashflow is very poor. It can be a strongly viable company but we face threats from creditors. What can we do?"

What is a CVA (Company Voluntary Arrangement)?

A bridge

A CVA is a legally binding agreement with your company's creditors to allow a proportion of debt to be paid back over time.

This page will help you to discover what a company voluntary arrangement does, understand how it works and how it can help you stop creditor pressure and turnaround your company.

Read our detailed guide for more free information, or you can download our free 120 page PDF guide

If you do not wish to read through all the guides and info on the site then you can call our support centre on 08009700539 for a no obligation confidential chat. Read on to see the benefits of a Company Voluntary Arrangement, and how it can help you.

If your company needs urgent help - call us free on 08009700539 or 07833 240747 (out of hours) or email our advisors on cva@ksagroup.co.uk

If you give us a call we can advise you on which course of action suits your particular circumstances. We have years of experience with HMRC, banks, creditors, suppliers, shareholders, lenders etc and we know their likely impact on your business. 

Request our FREE 40-page guide for worried directors and find out everything you need to know about CVAs, legal issues and insolvency options. 

Company Voluntary Arrangement benefits for your company

  • Company voluntary arrangements can improve cashflow, quickly.
  • Stop pressure from tax, VAT and PAYE while the company voluntary arrangement is being prepared.
  • We can stop a winding up petition and get it adjourned
  • A company voluntary arrangement can rapidly cut costs. (see this case study)
  • Company voluntary arrangements can terminate employment, leases, onerous supply contracts and all with NIL CASH COST.
  • Also allows your company to terminate property lease obligations and vacate premises with NIL cash cost (using our expertise.) (see this case study)
  • We write the deal, you run the company and get the UK's leading company voluntary arrangement experts working for you.
  • You can terminate directors and/or managers contracts as well. CUT COSTS FAST!
  • Remove employees with no redundancy payments of lieu of notice costs (paid by the Government)
  • Terminate onerous customer/supplier contracts.
  • Board and shareholders generally remain in control of the company.
  • Has much lower costs than administration and Scheme of Arrangement
  • It is not publicly announced like administration is.
  • You do not have to say your company is in a Company Voluntary Arrangement to your customers. (see this case study showing this.)
  • Finally, it is ALSO a good deal for creditors as they retain a customer and receive a some of their debt back over time, usually between 20p and 100p in every £1 of debts, depending on what your company can afford to pay back
  • We can hive the business out to a new clean company, it can trade with customers and suppliers, old company gets a management fee to pay the creditors back.
  • Check our CVA worries page if still unsure.

Blue Inc to enter company voluntary arrangement (CVA)

Update: 23/03/2017 - The CVA has been approved by 80% of creditors, according to reports. The supervisors will look to beginning CVA proceedings, which will include rent reductions and closure of under-performing stores. 09/03/2017 - The national menswear retailer has proposed a CVA to its la..
Read More

Leading solicitors practice, Just Costs Limited, goes into CVA

Reports reveal Just Costs Limited has gone into a company voluntary arrangement with its creditors, expecting to pay back 100% in the pound. The firm owes a total of £829,000 to creditors, including landlords and HMRC. Based in Manchester and London, the firm specialises in personal injur..
Read More


A simple description of a company voluntary arrangement!


Company Voluntary Arrangements are essentially a deal between the insolvent company and its creditors; This deal places a legal ring fence, called a moratorium, around the company and stops creditors attacking it. This allows a viable but struggling company to repay some, or all, of its historic debts out of future profits, over a period of time to be agreed.

Directors stay in control of the company, with KSA Group providing support. It can stop legal actions like winding up petitions, if you use a quality, experienced advisor. The directors need to be committed to saving the business.  Also a company voluntary arrangement allows the opportunity for the business to be sold or refinanced.

The process has been part of UK law since 1986 and is one of the Government's preferred rescue options.

Keith Steven talks about turnaround and Company Voluntary Arrangements with the Telegraph. Read the article "A solution to insolvency"

Complete expert's Guide to the company voluntary arrangement

Click for Keith Steven's unique, hugely detailed and comprehensive guide. All of our guides and more in one 120 page PDF. View Now

Company voluntary arrangement detailed guide - Click this bar

All you need to know, from framing the deal through to creditors' votes at the creditors meeting unique to KSA Group.
View Now

Company voluntary arrangement FAQs

Frequently asked questions from our users. Read these and see if your question is answered. View Now

Company voluntary arrangement Flowchart

A fast and unique pictorial view of the process, from start to approval. Print our flowchart off for very quick reference. View Now

Company voluntary arrangement case studies

Over 100 case studies - click now! View Now

CVA worries

Or common comments like "No, we cannot use this mechanism because our suppliers won't supply": Not so, they will supply when KSA has talked to them! View Now

Company Voluntary Arrangement or pre pack Administration?

Callers often say they have been told to put the company into Administration. Here we compare both. View Now

CVA moratorium - How does this work?

Our guide to the question of protecting the company with an informal or formal moratorium (Technical guide). View Now

Company voluntary arrangement plus hive down

How to set up a new company with a company voluntary arrangement - technical options guide from KSA. View Now

Company rescue in Scotland

Business in Scotland? Read this and be shocked at the lack of rescue culture north of the border. We have many Scottish managing directors who champion the Company Voluntary Arrangement! View Now

Company voluntary arrangement for a LLP

Our new guide to how to rescue a Limited Liability Partnership (LLP). Once again unique to KSA Group. Use this guide if you are a law firm or accountancy firm with serious problems. View Now

Read what other directors have thought about the Company Voluntary Arrangement mechanism:

In deciding to go with KSA we had numerous other providers who were either cheaper or pushing a pre-pack route. You have delivered what you set out and certainly a much better outcome than administration.  See full testimonial"


So how much does it cost?

This does depend very much on the total number of creditors, employees, the bank's position, and what level of negotiation is needed.  In the end, a company voluntary arrangement is a deal and doing a deal involves talking to people and the stakeholders in the business.  It helps if the company has good financial information and there is not a compressed timetable due to aggressive legal actions by creditors.  By acting early this can be generally avoided.   So how do we pay if we are in financial difficulty?  

Simply, once we are instructed all the creditors deal with us and we can effectively freeze payments to creditors until a deal is done. Some advisors say that a company voluntary arrangement is paid for by the creditors.  This is a bit misleading and it is likely that personal guarantees will be requested to cover the payments into the company voluntary arrangement and further fees.  What happens then if it fails???  Err... you will run up a large bill that you will be personally liable for.  We do not ask for these personal guarantees.  To discuss how much we charge then please call us on 08009700539

Between April 2017 and June 2017, an estimated 100 companies entered a company voluntary arrangement as a way to restructure their debts and survive.

Every business is different and every situation is unique."
If you give us a call we can advise you on which course of action suits your particular circumstances. We have years of experience with HMRC, banks, creditors, suppliers, shareholders, lenders etc and we know their likely impact on your business. In many cases, you may not be the best person to judge your business's viability as you are too close to it. Reality check the situation with us and we can advise further and follow up with a free meeting for piece of mind.


Related pages

Author: Keith Steven


The browser you are using is Explorer 8 and this site is not compatible with this version. Please upgrade or switch, which is free, for a more secure and better browsing experience.Close