Top Ten Directors Insolvency Warning Signs ?
- Fire fighting - you don’t get your work done because of lack of focus.
- Lack of information or wrong information and concentrating on non-essential issues.
- Compartmentalising" problems - in other words do you deal with one creditor problem and ignore others?
- Do you blame the bank? Your creditors? The customers (debtors)? Your accountants? Your advisors? In other words do you blame everyone except yourself for your cashflow pressure?
- You don’t have a business plan.
- You don’t have regular team, management and board meetings or up to date financial information.
- You don’t like changes.
- Directors are taking big salaries and expenses.
- You think that one more sale, one more contract, one big customer payment will solve the cashflow problem? (It won’t)!
- Really number one)! You have an overdrawn director’s current account. See a guide to this issue here: directors overdrawn current account in insolvency.
Listen we know that it is a lonely place to be when a business becomes distressed. If you want to learn more about the situation you face use this site for full details of the options available, the legal obligations you face and the best way to deal with the problems the business faces.
DO NOT ignore the problems they will not go away unless you take proactive steps to deal with them. Please read Is my company insolvent? below or on the site.