Company Debt Options

If you own a business that is struggling to pay off creditors or is facing enforcement action, there are options available to improve the financial position and reduce the risk of insolvency, some of which are summarised below:

  • Business overdrafts – flexible and tailored short-term borrowing
  • Business Loans – longer-term borrowing with structured repayment terms
  • Factoring/Discounting – readily available funding on invoices raised
  • Asset Refinance – refinance existing assets maximising value 
  • Trade Finance – short and long term supply chain funding
  • Payroll Finance – funding for the payment of salaries

It is important to consider options at the earliest opportunity in order to determine a likely solution to the issues faced.

In the event a solution is unavailable serious consideration should be given to a restructure under the protection of an insolvency process:

Company Voluntary Arrangement

A CVA is an arrangement over a specified period agreed by creditors and subject to specific agreements which the company must adhere to during the course of the arrangement.

Having a CVA approved enables the company to continue to trade in most instances securing both on-going contracts and employees.

Administration Order

An administration order comes into force when a company is under severe financial difficulties requiring an administrator to either protect and assist in the running of a business or ensure enhanced realisations are generated from any business/asset sale.