How do you know when the time’s right to speak to TruSolv?


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March 12, 2021     |     Posted by:     |     Category: Blog

There isn’t a formula for calculating the precise moment to reach out to our team. Like many situations, it really depends on your circumstances. One thing we’re clear on, is the earlier we’re made aware of what’s going on in your business, the more options may be available for you. But, how early is early? Let’s discuss the typical conversations we’re having with company directors, at the moment.

Business owners who took advantage of the Bounce Back Loans scheme, may now be approaching the 12-month anniversary of when they started. Repayments are becoming due, and they’ll be starting to pay interest on their loan at a standard rate of 2.5%. Cash may be running out and they’re unsure as to how they can make repayments – many still without a firm date as to when they’ll reopen.

If this was the position and it wasn’t taking place as a result of the coronavirus pandemic, we’d be saying to directors, “let’s take a look at your forecasts and the overall viability of the business. What can or could change to improve the position? And, are you continuing to trade when you ought to know there’s no reasonable prospect of avoiding insolvent liquidation?”

However, we are in fact dealing with a pandemic, but ultimately a lot of the questions are the same. Whilst the Furlough scheme makes ‘sitting on your hands’ an attractive option, there needs to be a plan beyond that. The insolvency legislation’s a toolkit to work through these issues:

The only way to know is to plan ahead. That may be looking at a range of scenarios; ‘best case’, ‘worst case’, ‘complete disaster’ or somewhere in the middle – ‘probable case’. Directors know their business better than anyone, forecasting might be difficult but they probably have a good idea where things are heading. With the right support, we think a lot of directors will be surprised as to what can be achieved out of what seems like a perilous situation.

But here lies the dilemma for directors, at the moment. Although the company’s running out of cash, they’ve retained their staff, and those individuals are earning wages (albeit 80% of what they’d normally earn). Is now the time to be thinking about any form of restructure?

How do you know when the time’s right to speak to TruSolv?

So, in answer to our question – the time is now, the weight that can be lifted by speaking to someone’s huge. Director’s often comment “I wish I’d come to you sooner”. No one’s ever said “I wish I’d not come to you at all”.

Picking up the phone to us doesn’t mean you’ll be committed in anyway to changing anything about your business. It does however, give us the opportunity to provide you with free advice, and more concrete answers upon which you can make decisions in the future.

Contact us on 0808 196 8676.

 

 


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Through the years our team of experts have helped hundreds of UK companies buckling under financial pressure find their way back to sustainable growth. Whether you need advice on dealing with creditors, repaying business debt, setting up a payment schedule with HMRC or any other pressing issue, we’re the company to call. We’ll guide you every step of the way through the process of restructuring, refocusing and recovering.

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