In order to obtain an order from the court that a director is personally liable for wrongful trading under section 214 of the Insolvency Act 1986 (the ‘Act’) the Liquidator or Administrator have to not only prove the elements of wrongful trading, but they must demonstrate how the wrongful trading caused an increase in the company’s net deficiency. That is its losses. That is the company should objectively have been p
It’s an unfortunate reality, especially in difficult times that any SME could find itself insolvent. This isn’t necessarily the end of the world. Properly managed, a business can survive insolvency or, at worst, the owner can walk away sadder and wiser. Improperly managed, though, you could find yourself in serious trouble. Insolvency A company is insolvent when either it can’t afford to pay its bills by their due da
Do you ever look at all the competition from bigger companies in your sector and wonder what you’re doing challenging them? Or maybe you’re thinking of expanding into a new area and realise someone else seems to have cornered the market. Or do you look at the competition and think “So much the better”? Cornering the Market? We can all think of industry sectors where a few huge companies (or even one) have the market
Earlier this year, the government introduced a new measure that transferred to landlords the responsibility if ensuring that tenants have the right to live in the UK. At the time, it seemed rather like the government passing the buck to landlords already tangled up in red tape. Now that, for good or bad, we’ve voted to leave the EU, could this create even more difficulties for landlords? The New Scheme The measures,
You’d think that getting paid for work or sales would be at the top of the priority list for any company. It seems, though, that many SMEs are only too willing to write off any debt that presents difficulties. SMEs and Bad Debt Although they don’t get media coverage like the giants, SMEs are the lifeblood of UK business. Government research last year showed that more than 99% of the country’s businesses are SMEs, 1.3
Many companies seem to regard credit management as a necessary evil. You obviously have to make sure you get the payments you’re owed, but this could be seen to have the potential for damaging good relations with your customers. In fact, nothing could be further from the truth. Far from causing damage, strong, confident credit management can actually improve relationships. Nurturing Customers No doubt you put a lot o
Obviously I feel strongly that an independent debt collection agency, such as SJ Collections, makes a valuable contribution to the collections sector — I wouldn’t be running this business if I weren’t convinced of that. On the other hand, I don’t consider I’m automatically the answer to everyone’s prayer. So what is important about an agency? Clients Who Don’t Need an Agency Some companies find it more convenient to
In March this year, following Which? study of car and travel insurance, the Department of Business, Innovation and Skills announced its intention to simplify small-print terms and conditions. Which? had found that, in some cases, T&Cs were longer than two Shakespeare plays put together, making it almost impossible for consumers to understand what they’re signing up for. According to Cambridge Dictionaries Online,
Earlier this year, Justice Secretary Michael Gove announced that planned cuts to the legal aid system were to be shelved. This was some relief to both the legal profession and to people facing substantial bills for court cases, but it didn’t reverse the swingeing cuts brought in three years ago. What Is Legal Aid? It’s a basic principle of our legal system that justice should be available to everyone, but it usen’t t
Over twenty years experience in Debt Collection and Credit Control at your service. The worst thing you can do about collecting slow and overdue accounts is: "NOTHING"