Any business can face financial problems. Typically these involve the loss of a major contract, the business failure of a customer who owes a lot of money to the business or the loss of key personnel. Without the resilience to withstand such shocks a business’s cashflow is easily eroded and creditors adopt a more threatening stance to recover monies due to them. A landlord may threaten to end the lease; creditors may demand the return of goods or threaten to stop supplying the business.
At Morecrofts, our experienced team of insolvency experts have successfully helped many struggling businesses to enter into administration. This is a constructive process of trying to save a company. It is designed to hold a business together while plans are drawn up to rescue the business, sort out the problems and allow the company to restructure.
The making of the administration application or the filing of the notice of intention to appoint administrators gives immediate protection from all creditors including the landlord, hire purchase and lease creditors. In other words, all the company’s assets are protected to enable a plan of action to be put in place.
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