f your company is experiencing financial problems then you may need to take urgent insolvency advice, before you become guilty of wrongful trading. Company insolvency rates have increased by 62% in the last quarter from the proceeding year, and so it is clear that global economic factors have seeped down into the local economy.
You can spot whether your company may be in the grip of some financial distress with two classic tests.
Are your assets less than your liabilities and can you pay your debts as and when they fall due? If you fail either of these tests then your company may be insolvent.
However, just because you fail the tests it does not mean that you face company insolvency. There are plenty of rescue remedies available under the Insolvency Acts
If when you consider the matter further, you also recognise these additional signs, I would suggest that you call a debt helpline to discuss what you could do to alleviate your problems.
Additional signs of insolvency
Are you failing to make your vat and tax payments on due dates?
Are you having cheques returned by the bank?
Are you continually at the ceiling on your overdraft?
Are you changeing suppliers for new lines of credit?
Are you personally putting money in the business to keep it afloat?
Are you robbing Peter to pay Paul each month?
Do you dread opening the post?
If you recognise any of these signs then your company may be insolvent. You may still have a viable and vibrant business that with a few changes, could flourish without these problems. An insolvency expert can help you find a solution.
Steve is a qualified solicitor who has chosen to work outside the usual legal practice to be able to offer cost effective solutions for businesses and companies in need.
Read more at Http://steves-debt.blogspot.com