Navigating Insolvency & Cutting Your Losses
With Covid-19 restrictions having stunted a lot of businesses’ incomes, government loans have been helpful in the short term. However, these grants and loans were temporary fixes only. They did not prepare business owners for the second wave.
Using loans for unavoidable losses and expenses results in an ever-growing money sinkhole. If, as a business owner, you find yourself pouring more and more cash into a flailing business, there comes a time at which you must evaluate whether it is time to change direction, take a step back or invest elsewhere.
Insolvency can be a stressful time, and it is also laden with plenty of negative feelings. However, need be no shame in admitting to insolvency: It can be a chance to start afresh with new knowledge.
In particularly the leisure and hospitality industries, the situation is highly precarious. With these businesses unable to open or trade-in the way they need to, to stay afloat, they are losing money. Loans and grants can be seen as only delaying the inevitable.
The benefit of running a limited company is that the degree to which you, the director, are responsible for the debt is limited. You personally will not be liable to repay the debts, and only the amount you invested yourself.
Filing for insolvency may be a viable solution to the problem if you are finding running your business to be causing more headaches and losing more money than it is actually helping. We, at Aston Black, are here to support you through that process.
Getting an accountant to assist you with this process will reduce the amount of stress it gives you. We can help you to cleanly detach yourself from your commitments, as well as for settling your numbers. As a smaller firm, we also give a more personal service and will treat you with respect, empathy, and kindness in this difficult time.
If you need to talk about insolvency, and the best way to save money throughout the process, get in touch with us via this form.