Business Insolvency, Debt Management, CVA's & Factoring
There comes a time when every company might need a helping hand.
We offer CVA's & IVA's
- Access to over 140 business finance lenders.
- Personal service.
- Tailored solutions to suit your business needs.
- Will consider previously declined applications.
Company Voluntary Arrangements
The CVA is an insolvency procedure whereby the management of the company remain in full control.
An agreement between a company and its creditors to a plan of reorganisation, which involves either the delaying or a reduced payment of debts.
The Proposal includes the appointment of a Licensed Insolvency Practitioner, as nominee, whose role is to review the proposal and recommend to the court that the proposal be put to the creditors.
Following Court Approval, a separate meeting of the company and its creditors will take place with a view to approving the proposal. All parties are entitled to vote at the meeting.
A Licensed Insolvency Practitioner is appointed as administrator by the Court on the petition of either the company, its Directors or one or more creditors.
The court will make the order if one or more of the following can be achieved;
- Survival of the company as a going concern.
- Approval of a company voluntary agreement.
- An arrangement between the company and any named persons under section 425 of the Company's Act 1985.
- A more advantageous realisation of company assets than under the terms of a winding up order.
There are many types of Informal Compositions. A moratorium is a freezing of debts. It is an informal agreement between Debtor and creditor. It is used to give the Debtor more time to put his/her affairs into order. Its purpose is firstly for all creditors to be paid back in full.
This scheme normally works when creditors are few and can agree that it is a better return than bankruptcy.
If you are selling goods or services to businesses and have to wait for them to pay you, then Factoring could be the answer.
Many businesses offer to let their customers pay after say 30 days and end up waiting a lot longer. If you factored your invoices - subject to the terms and conditions agreed with the lender- then you could have up to 90% of the invoice value within 24 hours.
Factoring is a great way to raise money to help run your business.
Q. What is factoring?
A. A means of raising finance on sales invoices that you have been given to customers that are a business that you have supplied goods or services to.
Q. Who can use factoring?
A. Anyone in business that sells its good/services to other businesses.
Q. Are there any types of business that cannot factor?
A. Yes, where the business sells c.o.d or sells direct to the public.
Q. I have been waiting 2 months for a customer to pay me can I factor this debt?
A. In most cases yes. The factoring company would simply satisfy themselves that there are no legal reasons why your customer is withholding payment.
Q. How does factoring work?
A. An invoice is sent to the customer as well as the factoring company. Once the factoring company is satisfied that the client has received the goods or the service then they would release the funds
Q. How long would I need to stay in the agreement?
A. Normally for one year
Q. How do I pay back the money borrowed on the invoices?
A. Your customers would pay the factoring company and the factoring company would deduct their charges from the balance of the sales invoice and repay the balance less any management fees back to you.
Q. What is a management fee?
A. A fee that is payable for managing your companies sales ledger on your behalf. This it to make sure that your customers pay on time. It's like having a credit control department working for you.
Q. How long must I have traded before I can have factoring?
A. You can put factoring in place to start from day one
Q. What if my turnover is low and a have few customers?
A. There is a factoring company to suit most businesses requirements.