Does your company have working capital problems?
As every business owner knows, working capital is vital for any operation. Not having enough cash in the business can lead to problems quickly. Our guide identifies the various types of ways to secure working capital as well as what to do if you see trouble ahead.
Different types of working capital
- Trade finance
- Peer to peer finance
- Invoice & Factoring
- Stock finance
- Seasonal finance
- Cash flow finance
Due to the recent pandemic, working capital is likely to be a big problem for many businesses as they try and restart their operations. Many bills and creditors have been stretched out into the future and loans taken out.
For information on these different types of funding, browse our debt refinancing guide. If you need working capital, call us on 0800 9700 539.
Stop problems spiralling out of control
If there is a lack of working capital and your company is struggling to make tax payments as and when they fall due, it’s best to seek turnaround advice straight away to prevent any further debt issues. Failure to pay business taxes to HMRC could lead to a winding up petition issued against your company.
Rescue methods like a Time to Pay deal with HMRC or a company voluntary arrangement (CVA) are effective restructuring tools if your company is viable. If the business has come to the end of the road, a creditors voluntary liquidation (CVL) may be the best option. A CVL will close down the company and sell assets (if any) for cash to distribute back to creditors.
If you’re unsure of your next move or would like to enquire further about working capital issues, call us on 0800 970 539 to speak to an advisor.
Categories: Insolvency process
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.