It can be an extremely stressful time dealing with poor cash flow and a struggling business, but it is important to speak to a Global IS professional advisor as quickly as possible to understand all the options open to you and your business.
If you are trading insolvently then you need to act now to avoid being personally liable for the company’s debt. Answer these two questions to see if you are trading insolvently
- Can the Company pay its debts as and when they fall due? (Cashflow Test)
- Would liquidated assets be sufficient to pay liabilities in a liquidation? (Balance Sheet Test)
If you are trading insolvently you need to act now – and liquidation could be one option to help your business today.