Is Your Business Heading Towards Insolvency? 3 Key Tests to Watch Out For
Even if your business seems to be ticking along nicely, it pays to stay vigilant. Financial trouble rarely appears overnight – it builds slowly, often hidden behind day-to-day pressures and short-term solutions. The earlier you spot the warning signs, the more options you’ll have to turn things around. At Adcroft Hilton, we work with business […]
What Is A Members Voluntary Liquidation
A Members\’ Voluntary Liquidation (MVL) is a formal process for winding up a solvent company, allowing shareholders to extract capital in a tax-efficient manner. This procedure is particularly beneficial when a company has fulfilled its purpose, and the directors wish to distribute its assets. Initiating an MVL The process begins with the company\’s directors conducting […]
What is A Letter Before Action?
A Letter Before Action (LBA) is a formal communication sent to a debtor as a final request for payment before initiating legal proceedings. Serving as a critical step in the debt recovery process, an LBA outlines the specifics of the outstanding debt and provides the recipient with an opportunity to settle the matter without court […]
Rising Insolvencies – What SMEs Need to Know
The UK business environment has faced significant challenges in recent years, leading to a sharp rise in company insolvencies. In 2023, over 25,000 companies became insolvent, marking a 14% increase from the previous year. Although there was a slight 5% decline in insolvencies in 2024, with 23,872 cases recorded, the overall financial pressure on businesses […]
Understanding Debt Consolidation
Managing multiple debts can be overwhelming, but consolidating them into a single, more manageable payment may offer relief. Debt consolidation involves combining several debts into one, potentially with a lower interest rate or more favourable terms. This strategy can simplify your finances and reduce monthly payments, but it\’s essential to understand the available options and […]
What Happens if an Insolvent Company Owes Money to a Director?
It’s not uncommon for directors to lend funds to their own companies, often in the form of director’s loans. These loans provide essential financial support during startup phases or tough financial periods. However, when the company becomes insolvent, directors may face challenges in recouping their money. Here’s what happens when an insolvent company owes a […]
Understanding Personal Guarantees: What Business Owners Need to Know
A personal guarantee is a legal commitment where a company director agrees to repay a business loan or debt if the company itself cannot. This arrangement helps businesses access credit or financing by providing added security to lenders. However, personal guarantees can put personal assets at risk if a company struggles financially, making it essential […]
Understanding Insolvency for a Company Limited by Guarantee
If you\’re unclear about what a company limited by guarantee (CLG) is, or what occurs if it becomes insolvent, this article will clarify these points. A CLG differs from a company limited by shares, where shareholder liability is limited to their capital investment. Governed by the UK\’s Companies Act 2006, CLGs include entities such as […]
Understanding a Scheme of Arrangement: A Comprehensive Guide
If your company is considering restructuring its debt while continuing to trade, you may find a scheme of arrangement to be a suitable option. This process is distinct from a company voluntary arrangement (CVA) and is governed by different legislation. It also stands apart from other debt resolution methods such as a creditors\’ voluntary liquidation […]
A Guide to Business Recovery Options For Insolvent Businesses
If your company is facing financial difficulties, it\’s crucial to have a clear understanding of the various business recovery options available. Should your business require urgent support, it is advisable to contact experienced insolvency practitioners without delay. In 2023, the total number of company insolvencies reached 25,158, the highest since 1993 and a 14% increase […]