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Do You Need to Close Your Business? How to Do It Properly

When we set up a business, we’re not thinking of having to close it eventually. The reality is, though, that most businesses do eventually close, even if it’s after a good run. However, there are right and wrong ways of going about it. Why Might You Need to Close Your Business? It’s a sad statistic that a fifth of all businesses close within a year of being launched. There are various possible reasons. Maybe they hav
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Cryptocurrency and Insolvency — What’s the Future?

Cryptocurrencies, like Bitcoin and many others, have being growing in popularity for several years, but have posed a challenge in several legal areas. This has included insolvency laws. After all, how can you include as an asset something that’s not only non-physical, but also anonymous? However, English law has recently started trying to define cryptocurrencies as assets, so what does that mean for insolvency law? T
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Insolvency Service Raising Petition Deposits

If you’re applying to the Insolvency Service for either a Creditors’ bankruptcy or a Company liquidation against someone who owes you money, a deposit is charged. This may or may not be returned, depending on the assets available. The charge for deposits has been stable since 2016, but next month it will be rising substantially. So what does this mean, if you’re considering applying? What Are Petition Deposits? If al
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What’s the Position of Third-Party Guarantors Under a Part 26A Plan?

Two years ago, the government enacted Part 26A of the Companies Act 2006. The aim was to offer protection for companies during the Covid-19 pandemic, allowing the option of arranging a sanctioned restructuring plan. This includes the possibility of a moratorium on the company’s debts. However, one aspect of this not specifically covered by the Act, and not previously tested in court, is the position of third-party gu
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Bounce-Back Loans — Can’t Pay or Won’t Pay

With many businesses devastated by the Covid pandemic, government measures like furlough and bounce-back loans were often lifesavers. However, when the time came to start paying back, not everyone repaying as easy as borrowing. Sometimes this was due to ongoing challenges, but some cases were self-inflicted. Bounce-Back Loan Fraud — Convictions Begin Because of the urgency of the situation, bounce-back loans were oft
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Inflation Inspires Changes in IVA Advice

For anyone facing bad debt that they can’t pay off in the short term, an individual voluntary arrangement (IVA) can be an ideal way of clearing the debts over a longer period, without being vulnerable to action by their creditors. IVAs are arranged on the basis of what the debtor can afford on a monthly basis. As we know all too well, however, inflation is now running at a 40-year high, driven largely by increases in
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Should You Act as a Personal Guarantor for a Business Loan?

Have you ever been asked to act as a personal guarantor on a business loan? Maybe you’ve been asked by a business owner you’re on good terms with, or maybe you’ve considered taking on the role for a limited company you’re a director of. Is it a good idea to accept the request — and what could the consequences be? What Is a Personal Guarantee? There are various ways of offering security to a lender for a business loan
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Is Your Business at Risk from Global Supply Chain Problems

There plenty of challenges at the moment to SMEs, but one the major dangers comes from the global problems in the supply chain. This is largely down to the war in Ukraine and the resulting sanctions against Russia, but it isn’t a simple issue. How might this affect your business? Challenges to the Global Supply Chain The supply chain into the UK has suffered a series of blows over the past couple of years. The afterm
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SMEs Are Facing a Cashflow Crisis

SMEs have faced multiple challenges for the past two years, but they might be forgiven for looking forward to better times, now all the lockdowns are behind us. Instead, a recent report shows that the cost of living crisis is creating a situation where more than two million SMEs are only just managing to break even. Why the Crisis? Many SMEs had a difficult time during the pandemic, but conditions haven’t impro
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You Could Be Disqualified as a Director for Failure to Keep Accounts

You have a lot on your plate as a business owner, and keeping your accounts up to date might seem like something that can be put off till you have more time. This is unwise, even if nothing goes wrong, but there are circumstances when getting caught with your accounts undone could lead to disqualification as a Director. The Case of Mitchell Smith The government has recently announced the disqualification of Mitchell
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