financial stress advice

Company directors have very clear and specific responsibilities.

Central to their role is maintaining awareness of their company’s financial position and their subsequent responsibilities to employees, creditors and shareholders.

For company directors, who face potential legal, financial and reputational risk, the ramifications can be particularly profound. Indicators of insolvency include:

  1. Continuing losses
  2. Overdue taxes
  3. Not being able to obtain further finance from your existing or alternative banks
  4. Suppliers placing your business on COD or demanding payment before further supply is made or demanding payment plans
  5. Not paying your creditors within agreed trading terms
  6. Issuing post-dated cheques
  7. Cheques being dishonoured
  8. Making rounded payments not against specific invoices
  9. Threats of legal action or legal action for debt recovery
  10. Not being able to produce timely and accurate accounts

 

 

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