Business insolvency practitioners are a vital part of the UK’s financial services sector. As heavily regulated professionals, they play an integral role in dealing with businesses facing serious and often complex issues such as a company’s insolvency, or its potential for insolvency. Their advice is often invaluable, allowing companies to save themselves from going out of business, or to close down with dignity.
If you’re a director of a business insolvency practitioners that is struggling financially, it’s important to understand the role of an insolvency practitioner. Insolvency practitioners (IPs) are licensed by ICAEW, and can advise on, and take appointments in, all formal insolvency procedures including liquidations, Company Voluntary Arrangements, administrations, receiverships and individual voluntary arrangements.
They’re also able to offer informal support and advice, and will work with directors of the company and creditors to formulate a plan that will reduce debt levels or restructure finances. This can be a lifeline for a company in trouble, as it can avoid the costs of formal insolvency proceedings such as a winding-up petition and a winding up order.
An ICAEW licensed IP will have a range of skills and experience that they use in their role, such as being able to communicate clearly with different stakeholders in difficult and stressful situations. They will need to be able to identify the main issues that are at stake and explain these clearly to all parties, for example, to directors, shareholders, and creditors. They will also need to be able to act as a liaison between all parties and negotiate effectively.
Often, IPs will be asked to take on a role such as nominee or supervisor in a Company Voluntary Arrangement (CVA). As the former, they will prepare a CVA proposal for the company to be put to creditors. Once this is agreed, they will become the supervisor of the CVA and oversee its implementation until it’s completed and the case closed.
The best way to prevent a business from insolvency is to seek help as soon as possible. Early intervention can save a business, and the jobs of its staff, customers, suppliers, and creditors.
If you’re concerned that your business may be struggling, contact a professional insolvency practitioner today. Our team operates nationwide, offering face-to-face and virtual consultations to help businesses turnaround.
It’s always worth seeking advice from an expert before things get out of hand, and the earlier you act, the better. The government offers a searchable database that will enable you to find an IP who is perfectly suited to your needs. Click the link below to get started. It’s quick, easy and free!