Help for Directors

All businesses face the occasional financial crisis but when they become a critical problem you need to know exactly where you stand. In our help for directors section, you will find specific information for answering your questions around if you are insolvent, what you need to do if you are and how it will affect you.

Creditors Liquidation

What is known as Creditors Voluntary Liquidation is the process that most businesses must go through if they are insolvent. It can be a difficult time for everyone involved, so we have created this special section of our site to give you the important facts about CVLs in a clear and down to earth way so you can see where you stand.

Members Voluntary Liquidation

This is when your company is still solvent, but you (and your fellow directors) decide it is time to call it a day and retire or move on to the next stage of your lives.  With an MVL, you will release the assets and use these funds to pay off the creditors before returning the remaining funds to the shareholders.

Company Voluntary Arrangement

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Company Voluntary Arrangement

What is a Company Voluntary Arrangement (CVA)

This happens if your company becomes insolvent and you come to an arrangement with your creditors to delay or negotiate a payment arrangement of your debts. You can adapt a CVA to meet the needs of your business, enabling it to keep trading whilst paying off the debts in a way that’s affordable.

A CVA can provide the perfect solution if your company is fundamentally sound but is undergoing short-term cash flow problems. It gives a buffer to your company, giving it time and legal protection from your creditors to organise its finances.  Creditors are inclined to support a CVA where it’s clear that this will achieve a better outcome than liquidation.

How do we approach our role?

Once we’ve helped you and your fellow directors to compile a proposal, you would invite us to act as your ‘nominee’. We’d then take the following steps -

Throughout the process, you and your fellow directors would be in charge of the day-to-day running of the company.

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Administration

What is Administration? If your company is insolvent or close to insolvency, you have the choice of putting it into Administration. The process gives ... more

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Find out more about how we can guide you through a CVA.  We’re here to help with clear, straightforward support.

Call us on 0116 2325117 (Leicester), 01926 671891 (Warwick), 02476017639 (Coventry), 01604263179 (Northampton) or email us on info@smartbusinessrecovery.co.uk