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Why should you seek the services of an insolvency practitioner?

There is a common belief that Insolvency Professionals (IPs) are only needed when a company is insolvent, but this is not accurate. There are many functions that the IP can perform and this includes advising directors even when the company is solvent but they need to manage the fortunes and trade profitably once again.

When a business is threatened by legal action from creditors or when there are some temporary cash flow problems then professional advice should be sought and this can make things better for the business. It is important that you work as quickly as possible to avoid long-term problems. Under the circumstances, you should not delay because when you act as soon as you notice something is not right there are many options that will open up and they may include:

  • voluntary liquidation
  • Selling assets to direct more cash into the business.
  • company restructuring
  • The sale of businesses

If a company had previously been trading profitably and if the business is fundamentally sound, a licensed IP may offer the best chance of survival. The financial problems you may be dealing with can be really simple, like unexpected bills, or maybe you’ve lost a client who just went bankrupt or a market crash. This can affect trading and you may not pay vendors as expected. An IP can advise a company or person going through difficult times. They can identify and then present you with all the options that can help you restructure and recover. They pay attention to any business goals you may have.

Help in practical terms

The IP is able to negotiate with creditors for the client. They will offer all the options and then recommend a course of action that is best for the company or business in the circumstance.

The practitioner also engages creditors in professionally conducted negotiations and instills some level of confidence in the company’s long-term responsibility to settle all bills. Creditors will most likely trust and respect the judgment of a person who is a professional. Specialized knowledge is always appreciated.

When you have a professional deal for you or your company, you can rest assured that you are in good hands and that it may actually be the only thing you need to be successful.

It is an investment

Having a licensed and qualified IP is the best investment for the future of your company. Without such guidance, directors may face issues involving personal liability for company debt, accusations of illicit trading, and going out of business. An IP analyzes business operations in great detail to find a solution soon enough. An IP ensures that the most appropriate route is taken and then works to maximize the interest of creditors without neglecting business interests either.

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