Insolvency and Restructuring Specialists Needed to Assist UK Businesses in Challenging Economic Conditions.
Many more UK Businesses are likely to need access to Insolvency and Restructuring Specialists as economic conditions are set to remain difficult throughout 2016. As Insolvency Law Solicitors we know that SMEs are more likely to be exposed to insolvency than larger businesses, and we know that it’s important that business owners act fast when facing financial difficulties. This article looks at the reasons behind the economic conditions, and how we can help businesses.
What are the Reasons for the ‘Challenging’ Economy?
With 6% of all UK businesses out of pocket as they find themselves to be creditors in an insolvency procedure, as reported by R3, The Association of Business Recovery Professionals, it seems likely that the Chancellor of the Exchequer’s recent warning was not without foundation. In a dramatic speech, George Osborne warned that the UK economy faces a ‘dangerous cocktail’ of risks’, including the ongoing economic problems in China, Brazil and Russia, falling oil prices and the political crises in the Middle East.
The Chancellor’s view is backed up by the ‘Red Flag Alert’ from Begbies Traynor, which highlights the serious rise in UK businesses experiencing significant financial distress in the final quarter of 2015. Approximately 270,000 businesses are thought to be affected – a figure which is up 17% year on year.
Further economic uncertainty comes from the possibility that the United Kingdom may vote to leave the European Union.
How Can NDP Help Businesses Facing Insolvency?
Even in difficult economic times, there are always options and Insolvency and Restructuring Solicitors can assist business owners in finding the most appropriate solutions.
Aside from formal arrangements with businesses creditors such as a Company Voluntary Arrangement and other formal insolvency procedures, a distressed business could consider reaching an informal arrangement with its creditors. This could include a time to pay arrangement, which is something that HMRC will often agree to, or it may involve a smaller full and final settlement payment.
As Insolvency Law Solicitors in Birmingham, NDP is experienced and well placed to advise and assist with the best options for businesses, throughout the UK, in financial distress and their directors, partners or other stakeholders.
If it is not possible to reach an informal arrangement with businesses creditors, then NDP have access to a network of business recovery professionals, including trusted insolvency practitioners and refinancers who can help to find an appropriate solution for the directors and their business.
If your business is in financial distress, please do not delay. Contact NDP, the Insolvency and Restructuring Specialists, who have recently been shortlisted for Birmingham Law Society’s Law Firm of the Year Award for 2016 (up to 4 partners).
The sooner you take action and contact us, the more likely it is that we can help you to find an agreeable solution to your financial challenges. Call us on 0121 200 7040 or contact us for a free initial discussion.