How can you tell if your business is in financial distress?

Calculator on desk with laptop

10:58am 11th December 2017

Newtons Solicitors Promoted by
Newtons Solicitors

Balancing costs and profit is rarely an easy task for businesses, but if it goes too much in one direction it can result in severe financial distress or insolvency. Newtons Solicitors have some advice. 

Signs that a business may be in financial distress:

  • Money owed to your company is significantly overdue.
  • Refinancing of loans or assets.
  • Resignation of finance directors or senior team members.

When is the right time to ask for help?

  • As soon as possible is always the best idea, despite there sometimes being a fear of asking for help.
  • By not asking for it, your business runs the huge risk of going into insolvency (the business equivalent of bankruptcy).

What can be done?

  • Identify the cause of the financial difficulties.
  • Can costs be reduced to increase profit?
  • Can debts be recovered?
  • Could additional finance solve the problem - new investors for example?
  • Negotiations with creditors to allow long term payment of debt.
  • Could you sell the business?

Newtons Solicitors have helped a huge number of businesses with this issue and the first step is always a simple chat to see what the next step should be. 

Have a look to see what the team at Newtons could do to help with insolvency and reconstruction.

Beth Parsons talked to Andrew Cawkwell from Newtons Solicitors about what happens when a business is in financial trouble and what can be done about it. 

More business stories from Harrogate, Craven and Wharfedale here.

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