When a company faces the prospect of liquidation, business owners can find the situation both financially and emotionally taxing. They are often stumped as to how to manage the situation without losing control of their finances and assets.
CRS Insolvency Services (CRS) has compiled an overview for companies to assist them in recovering from their debts to avoid liquidation.
One of the first steps that financially struggling companies should take is to examine their assets and identify any potential cash inflow opportunities.
If companies have items that could be sold at a high price, they should consider putting them on the market in order to generate funds, which could be used to repay any outstanding debts.
Similarly, your company may have some remaining stock that could be sold. You could even sell the physical property where your company is located or sub-let part of your premises. Selling such assets allows the business to continue operating while paying off debts with the funds obtained from selling existing possessions.
Another strategy is to review your company’s products and services to see if they are actually adding to the business’ bottom line. If they are not profitable, perhaps it is time to replace them with products and services that are likely to bring in more money or if they aren’t generating profit discontinue those products or services.
CRS can help if you are looking to avoid company liquidation by placing your company into Voluntary Administration. To learn more about the differences between company liquidation and Voluntary Administration
If you wish to discuss your options further, please call us 24 hours a day / 7 days a week on 1800 210 073. CRS has a fully licensed and registered Liqiudator who can accept your appointment.