Don't let problems creep up on you

It is rare that directors or business owners wake up one morning to find that disaster has suddenly struck. Financial problems tend to be insidious.

Indications that something is wrong may be more obvious to others than they are to you. When you are busy firefighting and juggling your budget it is understandable that you might fail to spot the warning signs. If you are in any doubt please get in touch. Invariably the earlier you contact us the more we can do to help.

How can McTear Williams & Wood help?

  • It's said that the spectator sees more of the game. We can spot the warning signs even when you might be too close to see the dangers
  • Early intervention nearly always leads to more options and better outcomes. There are many more things you can do whilst your company is still solvent
  • Our best advice is often our free initial consultation that can help to set a business heading back in the right direction
  • Use our traffic light system below to self-diagnose your situation

The traffic light system

insolvency traffic light system greeninsolvency traffic light system green

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 to take out a new loan in order to pay your creditors near enough on time
insolvency traffic light system amberinsolvency traffic light system amber

Amber - proceed with extreme caution

  • You can't pay creditors within agreed terms. They have put you on stop but have agreed to give you longer to make proposals to pay
  • You can only get limited credit from new sources and you are using this to fend off your existing creditors
  • You can't accept new orders because you can't purchase raw materials or pay for the overtime required to fulfil them
  • Your bank has decided to claw back your overdraft facility and you are missing payments to non-essential creditors. Your bank wants you to agree to an independent business review
  • Creditors are threatening legal action
insolvency traffic light system redinsolvency traffic light system red

Red - stop and seek professional advice immediately

  • You are on stop with key suppliers, cannot raise working capital to fund your order book and turnover has dropped to below break even point
  • Your income will not meet your outgoings once interests and penalties are taken into account
  • County court claims, CCJs and statutory demands regularly land on your doormat
  • You are having sleepless nights and are on medication to steady your nerves
  • You have received notice of a winding up petition

If action is taken early there is often a good chance of a successful business turnaround. However, once decline has set in the chances of success become more remote and formal insolvency ends up being the only option.

We see many business owners who have had their heads in the sand for months or even years. We understand why! Facing up to the situation can be harsh, painful and involve difficult decisions. But the sooner it is done the better outcome there is likely to be. We help directors and business owners of SME and family run businesses throughout East Anglia and London who are in this situation all the time - our expertise and sympathetic approach means that you don't need to face financial problems alone.

For more information or to get in touch call us on freephone 0800 331 7417