There are many signs that can give the indication that a company is struggling and may need insolvency advice. We have provided a few signals that could give the indication that the company is struggling. These are by no means the only options, but are worth considering:
Bank
- Your overdraft is always at the limit
- Your bank is returning cheques
- An increase in your overdraft has been refused
- A loan application has been refused
- The bank has requested increased security
- Personal guarantees are requested
Accounts:
- Not Filed on time
- Annual Returns not filed at Companies House
Reporting:
- Failure to file company accounts on time and incurring penalties
- Failure to file annual return
Creditors:
- Paying creditors is difficult as cash flow is tight
- Missing Payments to suppliers
- Suppliers refusing to supply until old invoices paid
- Failure to obtain new credit
- Cannot extend existing credit
- Receiving warning letters
- Threat of legal actions
- Payment time getting longer from 30 to 45 to 60 days etc
- Visit by Sheriff or Bailiffs
Debtors:
- Don’t pay on time
- Debts over 60 days old
- Accounts department not invoicing regularly
- Request Further time to pay
- No dedicated debtor collection function
Factoring:
- Facilities being reduced
- A large portion of invoices being rejected by factoring company
- Cost of factoring increasing
Management:
- No Business Plan
- No Regular Management Meetings
- No Board Meetings
- Do not like Change
- Lack of planning and poor communication
- Directors Paying themselves big salaries and expenses when the company cannot afford
- No future strategy and no time to discuss important issues
- Overdrawn directors loan accounts
- Autocratic leadership
If you feel your business any number of the above signs and you are in need of further advice, please contact us today or call us immediately on 0800 955 3595.
