69% of business owners suffering from sleepless night due to poor cashflow
Business restructuring and insolvency expert Situl Raithatha of Springfields talks cashflow, financial distress, and when to consider employing an insolvency practitioner (IP)
Small business owners are suffering from sleepless nights according to Intuit QuickBooks study, the State of Small Business Cash Flow. It found that 69% of small business owners say they have been kept up at night by ongoing concerns about their cash flow status.
As a busy business owner, it’s understandable that there will be times when you feel stressed and worried about how you will pay suppliers and staff wages. Often, this stress can lead to sleepless nights, making it difficult to make clear-headed decisions about your business’s future. This is where an insolvency practitioner can help.
The primary objective of an insolvency practitioner at Springfields is to help a company in financial distress. This could be done through arranging a formal insolvency procedure, their aim is to provide support and guidance to company directors. This includes ensuring that the director understands their legal obligations and making sure they are aware of the consequences of different courses of action.
One of the benefits of engaging an insolvency practitioner is that they can help explain the director’s duties they may not have been made aware of. By seeking professional advice, the director can demonstrate that they have taken appropriate steps to address their company’s financial difficulties. This can help to avoid criticisms and legal issues that might arise if a company continues to trade when it is insolvent.
It’s important to understand that an insolvency practitioner’s ideal outcome is to keep a company alive and turn it into a profitable entity. This means they will explore all options before recommending that a company enters into a formal insolvency process. In many cases, this might involve restructuring, refinancing or negotiating with creditors to find a solution that works for everyone involved.
If you’re a business owner who is struggling with financial difficulties, it’s important to seek professional advice as soon as possible. The longer you wait, the fewer options you will have available to you. By engaging an insolvency practitioner, you can get the right advice and support to help you make informed decisions about the future of your company.
More information can be found in our blog section or you can contact Situl on 0116 299 4745 for direct advice and to book a free no-obligation consultation at your convenience. Alternatively please email info@springfields-uk.com
