Abraham Business Insolvency
We specialize in resolving financial challenges. From cash flow issues to accounting insolvency, we tailor solutions for stability. With expertise in short-term liquidity and long-term balance, we help clients emerge stronger.
“Using Abrahams has saved us from paying too much tax. They showed us simple legitimate ways in which we could pay less tax and this has really helped our business move from strength to strength.”
Dr Tsakpo & Associates
Insolvency - Don’t Panic!
The Good News
Insolvency is not a synonym for bankruptcy and is frequently temporary. The situation can often be resolved through accessing an additional line of credit eg a loan or the use of a credit card to defer payment.
The Technical Bit
In reality, there are two forms: cash-flow insolvency and balance-sheet insolvency.
- The former (cash-flow insolvency) is often referred to as “asset rich, cash poor” and is normally resolved either through one of the methods detailed above or by selling an asset.
However, if this doesn’t work or isn’t available, the business may have to declare itself insolvent.
- The latter (balance sheet insolvency) can be more serious as it implies that the company simply doesn’t have the assets to pay the bills.
In this case, the company may have to declare itself bankrupt – but not necessarily.
In both cases, there is often room for negotiation with creditors and we have assisted many businesses to reach a mutually beneficial solution this way.
……..but the Complexity
Whatever happens, however, the owners and/or directors of the company will need professional and experienced assistance to investigate the problem and advise on one of the many options that are available.
Unless you are knowledgeable in these complex matters, it is very easy to choose the wrong route, which may affect you, your staff and even your own personal credit rating.
Do you understand the difference between a ‘Creditors Voluntary Liquidation’, a ‘Compulsory Liquidation’, a ’Members Voluntary Arrangement’ and a ‘Company Voluntary Arrangement’?
If not, then you need our professional help and advice, acquired and honed over many years.
Contact us now via the form above and we will be by your side, making the journey ahead for you and your business as easy and stress free as possible.