Managing Debt – Tips to find the right financial help and support

Many businesses are struggling due to the instability in markets around the world – many are not out of the woods as far as financial security is concerned.  Insolvency numbers are down but this could spell trouble down the road.  If a company or business is struggling to stay afloat financially, what can be done to keep the company up and running?  Consider getting company debt advice from professionals who have helped others in a similar situation.

Facts and Figures

According to the latest figures from Insolvency Service in UK there is a 25% reduction in the 2nd quarter of 2013 of insolvent companies.  Corporate liquidations rose 10.5% during the same period.  The numbers of compulsory liquidations were lower by 6.6%; creditors’ voluntary liquidations were as high as 17.3%.

Experts are of the belief that this decline is just short term.  Low interest rates are helping many businesses stay in business but they don’t have enough resources to invest or grow.  When economic recovery begins in earnest, companies without enough funds could be in trouble again and one can expect to see a rise in insolvencies and liquidations.

Finding the right financial advice:

When a business is in financial dire straits, it is important to find professional company debt advice whether it is insolvency or otherwise.  By getting timely help early on in the process, businesses will be in a better position to bounce back. Ignoring problems will only make it worse.

Insolvency practitioners have the knowhow to help directors of businesses to resolve situations and keep companies running smoothly.  They can help with finding refinancing, restructuring debt and also selling off assets if necessary.  If liquidation is the only way out, then they help in that process too.

One important thing to keep in mind is that just because a company is looking for assistance and advice with financial issues, doesn’t mean that there Is no hope.  Practitioners look at all the reasons why a company is facing issues and try to resolve them – they look at ways to manage cash inflow, working capital and how to deal with major creditors.

Tools like insolvency are always available so that companies can get protection from creditors and one can put legal and binding compromises in place.  Even in cases where financial issues are insurmountable and recovery is unlikely, professionals offering company debt advice are in a position to work out a good outcome for all the concerned parties and minimize guarantor exposure.

Finding the right company with wide ranging experience in raising money for corporate clients is not that difficult.  Look for a company which can raise capital in the form of debt and equity or both.  Transactions could include a leveraged buyout, refinancing, restructuring or even asset based financing.

Companies in the business of offering company debt advice usually have strong connections to lending institutions like banks, fund companies and investors as well.  Make sure that they offer financial analyses and debt restructuring tools and have a good legal team to negotiate new contracts.

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