What Can Simple Liquidation Do for Your Business?

1. Get Quote About FAQs Blog Contact Make Payment Login Recent Post What is the Difference Between Restructuring in the UK and the USA from an Advisory Perspective? 22/12/2022 Top Businesses that Bounced Back from Insolvency or Bankruptcy 15/12/2022 Preventing Open Position Liquidation in the United Kingdom 03/12/2022 Why UK Pension Fund Selling Stokes Fear Across Global Bond Markets 26/11/2022 How to Close a Limited Company When Retiring 21/11/2022 What Can Simple Liquidation Do for Your Business? 0 Comments / Liquidation / By Viv1 Liquidating your company can often be a stressful task. This doesn’t have to be the case, though. Simple Liquidation was set up to help so directors like yourself can do it quickly and efficiently. Each of our liquidators is authorised by the Insolvency Practitioners Association and the Institute of Chartered Accountants in England and Wales. We are not an intermediary, a sales company or a broker; we are a team filled with experienced industry professionals boasting a range of knowledge and expertise. We take pride in the knowledge and expertise that we are able to offer our clients from the beginning of the process to the end. What is Liquidation? Liquidation is selling a business’s assets and then using the proceeds to pay off any debts that said business has. After these assets have been sold and the debts have been paid, the business is permanently closed down. There are two kinds of liquidation, which include: Compulsory liquidation – this is the process where a creditor forces a company into liquidation Creditors voluntary liquidation – this is a formal procedure which is initiated by the directors of a business Choosing Voluntary Liquidation Instead of Having Liquidation Enforced If you wait for a creditor to force your company into liquidation, you risk your business incurring additional fees and suffering greater financial loss. You also increase the risk of your creditors suffering greater loss, which directly contravenes insolvency laws throughout the UK and is a breach of your duties as a director.

2. You are going to incur fees when you opt for Creditors Voluntary Liquidation as well, but they will likely be less than compulsory fees. You also could potentially claim for director redundancy pay if your company undergoes Creditors Voluntary Liquidation. It’s common for the directors of a company to be sensitive to the costs of liquidation. This might be because the company is solvent and a cost-effective route towards liquidation is necessary. Alternatively, this could be because a higher cost can stop directors from taking action, which leaves them exposed to the risks of trading with an insolvent company. Simple Liquidation’s practitioners can apply our 30 years of experience to your situation in order to provide advice on how your company can move forward in a way that benefits both you and your creditors. How Do You Know That It’s Time to Liquidate Your Company? There are three different tests that you can apply to your business in order to work out whether or not you should go into liquidation. These are: The Cash Flow Test: If you are unable to pay the bills that fall due, then it may be time to go into liquidation. The Balance Sheet Test: If your company’s assets are less than its liabilities then you should consider speaking to some liquidation practitioners to work out what your best options are. The Legal Action Test: If your creditors have taken action against you through the courts then think about the possibility of liquidation. You should work out whether or not your company is solvent or insolvent, and getting advice will be able to help you when doing this. If you ask for advice then you will also be able to avoid any accusations of mistrust or misconduct that could be brought against you further down the line. For instance, if you fail to cease trading after establishing you are insolvent. Liquidation Warning Signs There are a number of different signs that could mean insolvency is on the horizon and liquidation may be necessary. These include but are not limited to: Your business is suffering with a lack of cash There is mounting pressure on your business from suppliers and creditors You are unable to collect your own debts effectively You’re struggling to pay the wages of your staff Your business has outstanding tax liabilities Your business is suffering with surmounting bad debt There is a lack of reliable management information You are finding it difficult to secure any new lines of credit for your business Your creditors are imposing legal action You’ve had a visit from some bailiffs Next Steps If you have applied some of the liquidation tests to your business or the warning signs detailed above are becoming more and more apparent then it might be time to speak to some professionals. Doing so can often feel quite daunting, but at Simple Liquidation, we are on hand to break down all the jargon involved in the liquidation process and provide you with the best advice out there. We are happy to talk to you and get an understanding of the current situation your business finds itself in. Once we know what your problems are we are going to be able to offer professional and helpful advice regarding your insolvency matter. You will leave your meeting with Simple Liquidation having a clear idea about where your business currently stands and what your best course of action is. Are You Considering Liquidation? When a business is struggling, it is only natural that directors and creditors begin to consider liquidation. There are two types of liquidation, which are compulsory liquidation and creditors voluntary liquidation. Creditor’s voluntary liquidation is always the preferred method as you may be able to claim directors’ redundancy pay and prevent the possibility of accusations being brought against you.

3. If you have any questions about liquidation and the current position that your business finds itself in then you should consider speaking to professionals such as Simple Liquidation. Our team of professionals will be on hand to help you in any way we can, so if you would like to arrange a meeting, then do not hesitate to get in touch. ← Previous Post Next Post → Sponsored Dallas: Unsold Never-Driven Cars Now Almost Being Given Away: See Prices Best Warm Boots For Seniors To Ensure Safety And Warm SUV Deals | Search Ads Read More Zekear The Warm Women's Boots Are Taking Texas By Storm Here Are 7 American Discounts Seniors Only Get If They Ask Reveal 5 Eyelash Secrets For Mature Women Shop Now Learn More New Trends Prime Prometics Senior Discounts By National Penny  0 Comments 1Login G Start the discussion… LOG IN WITH OR SIGN UP WITH DISQUS ? Name Share Best Newest Oldest Be the ?rst to comment. Subscribe Privacy Do Not Sell My Data

4. Sponsored Dallas: Unsold Never-Driven Cars Now Almost Being Given Away: See Prices Belly Fat Removal Without Surgery in Dallas: The Price Might Surprise You The Warm Women's Boots Are Taking Texas By Storm New Trends SUV Deals | Search Ads Belly Fat Desk | Search Ads Here Are 7 American Discounts Seniors Only Get If They Ask Reveal 5 Eyelash Secrets For Mature Women Warning Signs of Psoriatic Arthritis Most People Are Unaware Of Prime Prometics Senior Discounts By National Penny StuffAnswered Simple Liquidation Privacy Policy T&Cs Lawrence House, 5  St Andrews Hill, 0800 246 5895 mail@simpleliquidation.co.uk Norwich, NR2 1AD    