Help for struggling businesses
We understand the sleepless nights, the weight of responsibility and the fear of the unknown. As an SME or family business owner and director, managing financial challenges is deeply personal and incredibly stressful. You’re not alone in facing these difficulties and seeking help is a sign of strength.
At McTear Williams & Wood, we’ve helped hundreds of London SMEs and family businesses navigate financial challenges over the past 25 years. We’ve fine-tuned our step-by-step approach to help you take back control. We work closely with you to understand the specific challenges you and your London-based business face and present clear, actionable solutions whilst ensuring directors understand their legal obligations and:
- Act in the best interests of creditors;
- Avoid wrongful or misfeasant trading;
- Avoid personal liability.
Whether you’re exploring business rescue or insolvency options, we’re here to help you find a path forward, starting with a free initial, no-obligation confidential advice meeting.
How can I identify early signs of insolvency in my business?
Recognising the early indicators of insolvency is crucial for taking proactive measures. Common signs include:
- Persistent cash flow issues: Regular difficulties in managing cash flow can signal underlying financial problems.
- Inability to pay suppliers or staff on time:
- Struggling to pay loans, particularly from secured creditors
- Mounting arrears owed to HMRC.
Early detection of these signs allows for timely intervention and the exploration of recovery options. Businesses often gradually run out of cash, and you might experience the above for months and begin to think it is normal – It isn’t.
What steps can I take to turn around a struggling business?
Turning around a struggling business involves several strategic actions:
- Conduct a thorough financial assessment: Understand the extent of financial difficulties by reviewing cash flow statements, balance sheets, and profit and loss accounts.
- Improve cash flow management: Implement strategies such as negotiating better payment terms with suppliers, incentivising clients for early payments, and reducing unnecessary expenses.
- Seek professional business advice: Particularly if you are thinking of injecting rescue funding engage with licensed insolvency practitioners or business advisors first to explore options like restructuring or refinancing.
- Communicate with creditors: Open discussions with creditors can lead to negotiated terms for time to pay that provide breathing space for the business.
What are my options if my company is struggling financially?
When facing financial difficulties, several options are available:
- Selling surplus assets or improving cash flow by switching to work with a lower working capital requirement.
- Company voluntary arrangement (CVA): A formal agreement with creditors to repay debts over a fixed period while continuing operations.
- Company administration: Appointing an administrator to restructure the company and protect it from creditor actions.
- Time to pay arrangements: Negotiating with HMRC for an extended time to settle tax liabilities.
Each option has implications and suitability depending on the specific circumstances of the business.
Get in touch to speak to one of our specialists to find out more >
How do director responsibilities change during insolvency?
When a company becomes insolvent or is approaching insolvency, directors have a legal obligation to prioritise the interests of creditors above all else. This shift in responsibility marks a crucial point in the director’s duties and requires careful action to avoid personal liability.
Directors owe duties to their company and its shareholders. The latter progressively shifts to creditors as insolvency looms. It is actually quite difficult to avoid breaching director duties once the creditor duty is engaged.
Another key duty is to maintain accurate and up-to-date financial records. Having a clear picture of the company’s financial position is not only vital for making informed decisions but also a legal requirement during times of financial distress.
Understanding and adhering to these responsibilities is essential to mitigate personal liability and protect both the business and its stakeholders during difficult financial times. Taking and following professional advice from an Insolvency Practitioner like us is your best way of minimising your risk of personal liability.
How can I improve my company's cash flow?
Effective cash flow management is vital for business sustainability. Consider the following strategies:
- Invoice promptly and follow up: Issue invoices immediately after delivering goods or services and follow up on overdue payments.
- Manage inventory efficiently: Avoid overstocking and focus on fast-moving products to free up cash.
- Review and reduce expenses: Regularly assess operational costs and eliminate unnecessary expenditures.
- Explore financing options: Consider short-term financing solutions to cover gaps in cash flow.
Implementing these measures can enhance liquidity and financial stability.
What should I do if I can't pay my suppliers or employees?
- Prioritise payments: Assess which payments are critical to continue operations and prioritise accordingly.
- Communicate proactively: Inform suppliers and staff about the situation and discuss possible time to pay arrangements.
- Seek immediate professional advice: Consult with insolvency practitioners to explore solutions and avoid potential legal consequences.
Taking swift action can prevent further deterioration of the business’s financial position.
Free resources for London business owners with cash flow problems
We offer a free, no-obligation initial consultation to discuss your situation and explore your options. We’ll provide transparent and upfront pricing based on your specific needs. Once we are engaged we get paid from company assets so our charges won’t have to be paid by you personally.
This guide covers everything from early warning signs and managing a cash flow crisis to when to speak to an insolvency practitioner.
Explore how to survive when your business is struggling and consider if rescue is an option or how to close your business the right way.
Discover if you can save your business from insolvency with our guide detailing the least to the most severe insolvency options.
Find out whether offering a personal guarantee is the right option to help your struggling business, along with the risks.
Discover a library of top tips for directors of struggling companies, from managing your reputation to funding a struggling business.
Facing financial difficulties arising from business activities? We can help. From debt management plans and even bankruptcy.
Additional resources: Negotiating with creditors | CIBLs | HMRC debt | Time to pay agreements
Free advice line for distressed company directors > 08003317417
How we help you look after your employees through insolvency
When we work with small and medium businesses in and around London, often family-run, we understand that the financial security of employees is a top priority. This is why we have a dedicated employee support team.
Our team understands the importance of timely and transparent communication with staff, ensuring compliance with legal obligations. They provide swift and essential support to employees throughout company administration and liquidation.
Our employee support team offers services to help businesses effectively navigate employee-related challenges during financial difficulties:
- Explaining employee rights and assisting with claims.
- Processing redundancy claims efficiently.
- Facilitating pay in lieu of notice claims handled by the Redundancy Payments Office, which is part of the UK government’s National Insurance Fund.
- Guiding directors through making their claims as employees.
If you would like to discuss employee support in more detail get in touch with our expert team for a free and confidential initial consultation meeting.
Book a free 1-2-1 consultation and get confidential advice
If your London-based company is struggling to pay creditors, or you’re experiencing decreased cash flow and have concerns about your finances, book a free 1-2-1 with our specialist team.
During your free initial advice meeting, we will discover a true picture of your company’s financial situation
and will offer practical and expert guidance on your next steps.
Initial meetings can be held at our office or your premises and are completely confidential.
There is no charge for this meeting – we only begin to charge if and when the terms of engagement have been agreed.
How we can save your business from going under
If you’re the director of an SME or family business in London considering the future of your company we’re here to help you explore all your options. We understand the unique challenges faced by SMEs and family businesses and where the lines blur between the company and personal finances. As such, our team approaches each case with complete sensitivity and discretion.
Our expert insolvency practitioners and advisors think outside the box to find the best solutions for all stakeholders including business owners and employees.
We often find that there are more options and routes back to recovery when directors engage our services at an early stage, so don’t hesitate to get in touch at the first sign of financial difficulty. We are here to help you remain in control.
Understand your financial options
Check the health of your business with our free business health check tool.
Free test includes:
- Company health assessment
- Types of solutions available
- Options & next steps
*All information provided is completely confidential and will not be shared with a third party
Get business support & make connections
Join our professional networking events in London
We’re looking to run a free informal ‘invitation only’ lunchtime networking organised and hosted by McTear Williams & Wood for London professionals. If you’re interested in attending, please register your interest below and you’ll be the first to hear about the event.
FAQs for business in financial trouble
My business is struggling, but I'm worried about the cost of insolvency advice. How much will it cost?
We offer a free, no-obligation initial consultation to discuss your situation and explore your options. We’ll provide transparent and upfront pricing based on your specific needs. Once we are engaged we get paid from company assets so our charges won’t have to be paid by you personally.
I'm concerned about the impact of insolvency on my employees. What support can you provide?
We have a dedicated employee support team that will guide your employees through the process, explain their rights, and help them access available resources, including redundancy claims.
What's the difference between business rescue, administration, and liquidation? Which option is right for me?
Each option has its own purpose. Business rescue focuses on turning your company around, administration provides temporary protection from creditors, and liquidation involves closing the business and if appropriate selling the business and assets (often back to the directors) into a new company so the business can continue to trade without the liabilities of the old company. We’ll assess your situation and recommend the best course of action.
I'm a family business. How will this affect my personal relationships?
We understand that family businesses have unique challenges where the lines can be blurred between the company and personal finances. We approach each case with sensitivity and discretion, and we’ll work with you to minimise the impact on your personal relationships. We also know how to communicate clearly and effectively with multiple family members and creditors.