Does a company owe you a significant amount of money?
If so, there are a couple of ways that we can help, but it does depend on your position as a creditor. Read our page on creditors rights and legal actions if you are not sure as to your position.
The most crucial question is whether you have security over the company.
If you have a debenture or charge over a company's assets then you have the power to appoint an administrator to ensure that you get the best possible recovery of your debt. In fact, you are the first in line and take priority over unsecured creditors such as trade creditors/suppliers and HMRC.
You will normally have security if you have lent money to a business. Banks and asset based lenders will have a charge over the assets, as long as they have been registered. Plant and machinery leasing may also have security in that they have control over the asset in the event of non payment.
If you have a form of security then talk to us. As licensed insolvency practitioners, we can be appointed as administrators to ensure maximum recovery. We can also do viability studies on companies to assess their suitability for new lends or further advances. See details of lender services here.
From reading our site (clue is in the name!) you will have noticed that we are perhaps more rescue led rather than burial but we always do what is best for the creditors. If you are not sure if you have a fixed or floating charge over the company's assets then see this page for details.
If you do not have security in the form of a charge.
You have various remedies in law such as statutory demands and winding up petitions. Landlords do have the right to forfeit the lease. We always advocate jaw-jaw over war-war and we can help with negotiations, however, if this is not an option, we can recommend debt recovery companies as well.
What about a personal guarantee to you?
If the business is in distress then there are chances that the director has offered personal guarantees on other loans, overdrafts etc so it is often not as good security as often thought.
We can represent creditors at meetings, if requested, and if the majority of creditors are unhappy with the insolvency practitioner chosen by the directors then they can appoint their own. Of course, all insolvency practitioners are duty bound to act on behalf of the creditors and not the director but you may chose to go down this route.
You can call our insolvency practitioners Wayne Harrison 07879 555349 or Eric Walls 07787 278527 to discuss any of the above if you wish.
Please be aware that if the business is already in administration or liquidation (post creditor meeting) then there is nothing we can do. You will need to talk to the appointed insolvency practitioner.
Worried about poor cashflow? Covid-19?, How to pay wages on pay day? For expert advice on a range of issues download our free Ultimate Guide For Worried Directors today. Or just call us on 0800 9700539
Please note that the guide was mostly written pre Covid-19 and there have been some changes to insolvency legislation that limits creditors actions and relaxes rules regarding wrongful trading. A new 20 day moratorium for distressed businesses has also been introduced.