Don’t delay – prompt professional advice is vital

Is your business experiencing financial issues? Is it inherently viable but unlikely to survive in its current form?

Acting sooner, rather than later, is always the best approach – particularly as demand for professional support is likely to soar as Government restrictions on insolvency procedures continue to be phased out.

That’s the message from CBBR’s Chris Brooksbank as insolvency practitioners, nationally, prepare for “substantial  and sustained demand” in 2022.

Chris said: “Businesses that are fundamentally viable have faced major challenges during the pandemic and successive lockdowns, despite Government support.  Some are now burdened by levels of debt that may make survival extremely difficult and increasingly unlikely.

“Some sectors have been particularly hard hit, including the leisure and hospitality industries.  We want to reassure people that there are options worth exploring and to reach out for professional help and support early on.”

Chris’s advice follows the Government decision to phase out emergency measures introduced by the Government’s Corporate Insolvency and  Governance Act 2020.  These have been replaced by temporary protections for those still recovering financially.

The new temporary restrictions remain in force until March 31st 2022, covering England, Scotland and Wales.  Read more in last month’s blog at:

Government throws new lifeline to small businesses – CB Business Recovery (cb-br.co.uk)

Chris added, “Moving ahead into 2022, firms will increasingly look to restructuring specialists for  help. For example, we may be able to help with a Company Voluntary Arrangement (CVA) or administration.  While neither option is a perfect solution, it can help to ensure that a fundamentally viable business will survive rather than collapse.

“We can also advise businesses with a significant debt burden, that are keen to avoid insolvency processes.  Options can include a Formal Time to Pay proposal to HMRC; considering debt re-financing;  or capital raising.

“In summary, we are anticipating a major spike in demand over the coming months, so please don’t hesitate to act quickly if you need help.  This will help ensure that you’re at the head of the queue, rather than facing long and unavoidable delays.

“Please do get in touch, for an informal, no-obligation discussion if you’d like to explore the options available.”

Ends….