Reasons for Business Failure
Introduction
- Insolvency
- Liquidation
- Pre-pack administration
- CVA
- Company Rescue
- HMRC Tax Advice
- Company finance / re-finance options
The main reasons behind insolvency are poor management and financial constraints. Although loss of market has been overtaken by them this time, it remains one of the top three reasons.
Older or larger companies tend to be easier to rescue.
Poor management can lead to insolvency
The main reasons behind insolvency are once again primarily poor management and financial constraints. This is much more prevalent in smaller companies, indeed the larger the company, the better the chance of survival and of receiving remedial treatment and of paying creditors.
Market loss is common, but is generally rarer than other management and financial reasons.
Specific investigation of the strong pound and the Asian crisis showed that these were major contributory factors in causing insolvency. Whilst not considered significant as primary reasons, these may well have been the final straw for many companies, particularly in manufacturing, retailing and transport and communication.
Speak to a company debt advice specialist or click here for further advice.
IVA's
The IVA Guide
Money Advice Direct has put together an IVA Guide based on the enquiries and questions that we receive at our helpline offices.
In the guide we cover such subjects as IVA Approval, early settlment of your IVA, missed IVA payments, IVA failure, additional debt claims and much more.
[click here for IVA Guide]
What is an IVA?
The IVA is an extremely powerful tool enabling you to clear your debt and return to a clean financial bill of health. Visit Money Advice Direct's Guide to Individual Voluntary Arrangements (IVAs).
[more...]
DANGER
Due to the tremendous demand for debt consolidation services the United Kingdom is now overloaded with debt management companies that contain misleading information. [more...]