Top Failure Warning Signs for Businesses

Company Debt has found that if two or more of the following apply, businesses can benefit from professional advice:
 

1. An operating cash flow ratio of less than one
2. Too many outstanding invoices waiting for payment
3. No cash to pay creditors, who may be sending threatening letters
4. Always operating at company overdraft limit
5. Unable to pay employees
6. Existing time to pay agreement with HMRC
7. Lack of knowledge when it comes to management re-numeration either through salary or dividends
8. Lack of ability to have financial information for up to date management accounts, or lack of input from accountant
9. Large debtor goes bad creating a shift in how the cash flow of the business is going to work
10. Over-reliance on one or two key customers for the business
11. Legal disputes disrupting the ability of a director to run a business as it diverts time and energy
12. Constantly dealing with problem/ firefighting?

 
In addition, Company Debt has developed a test which can be accessed at www.companydebt.com/insolvency test for businesses to check their solvency status within two minutes.
 
Antony Smith, Managing Director at Company Debt said, “All too often, senior management leave contacting us too late, preferring to bury their heads in the sand when financial problems emerge. By seeking professional support earlier, organisations can avoid major company restructures and eventually liquidation. We’d prefer to support managers before they reach the winding up petition stage and are here to help guide them through the business rescue options, before they reach their tipping point into a crisis.”

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