Early warning signs of trouble
This section covers warning signs that your company may be insolvent. Some warning signs are more obvious than others and the sooner you can identify them the better chance you’ll have at resolving the issues and avoid any long-term damage to your business. Indications that something is wrong may be more obvious to others than they are to you.
Green - go ahead but keep under review
- You are not losing money and do not need any credit
- You can't pay creditors in accordance with normal terms but they continue to provide credit and services subject to interest charges and late payment penalties
- You can pay current tax but you have tax arrears. You have agreed a schedule with the HM Revenue & Customs to pay off those arrears
- You have to increase your overdraft facility or take out a new loan in order to pay your creditors near enough on time