Once a business starts to experience cash flow problems debts can quickly become unmanageable, even if sales are good and ‘on paper’ the business is thriving. It only takes one credit customer or supplier who doesn’t pay on time, though, and your ability to pay your own debts is restricted.
This knock-on effect within a supply chain or industry can be very damaging, and is sometimes a precursor to full insolvency. It’s also a difficult situation to manage as a director, and a problem that might only be resolved with professional help.
We’re fortunate in the UK to have various procedures available in these circumstances, and one of these is the Company Voluntary Arrangement, or CVA.… Read more
