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Is your Business in Financial Trouble?
If your business is in financial trouble, don’t panic, but do act quickly.
You need to take professional expert advice as soon as possible to decide which is the best action to take - from the vast array of options available to you. Your own input is, of course, central to this process, but only with expert external advice can you make a truly informed decision.
Failure to make an early decision on whether the business should cease to trade can result in the directors having to contribute personally to the company’s losses and facing an investigation by the Department of Industry (DTI). If your company is trading whilst insolvent or if you know it can’t avoid becoming insolvent, directors may be liable for wrongful trading.
Deciding on the right time to exit a business is crucial. If there’s simply no hope for future profitability and the burden of debt is completely insurmountable, then closing down your business may be the only option.
Most businesses fail because they run out of cash. But there’s a lot you can do to prevent cash-flow problems provided you act in plenty of time before the problems become acute.
Far-sighted business people are far more likely to survive the downturn. Organising finance to see you through the worst of times is not something that can wait. Make sure you accurately assess day to day cash-flow, future profitability, and that everyone involved in deciding on the future of the business is agreed on the way forward.