Creditor pressure? Thinking of a Prepack for your business?
Don’t jump out of the frying pan into the fire.
If your business is under cashflow pressure, and you are contemplating a Prepack, before you commit your financial future, think about the safer alternative.
Is a Prepack right for you?
It may look like an easy option, buying your business back for much less than the amount of debts, and being able to carry on without the pressure. However, it’s usually not quite as simple as it sounds. There are a number of aspects that are often not fully explained and traps that you can fall into, that can put you in a worse situation.
We help businesses overcome cashflow problems by offering a number of services that can deal with cashflow pressure, without having to go through a Prepack and an insolvency process. These services include emergency loans, new funding, creditor settlement and debt collection.
If you are considering a Prepack, consider the facts:
Bank, Landlord, trade creditor and finance company guarantees all become payable, may put your house at risk
No guarantee liabilities
You will need to new funding to restart the business
Improved cashflow and self funding
Negative publicity - Legal adverts will be placed in newspapers, your customers, employees, suppliers and bank will know.
Completely confidential
You will be paying for Insolvency fees, lawyers fees, valuer’s fees, advertising costs
Low fixed cost
When your customers find out you have been insolvent they may decide to go elsewhere
Retain Customers and grow your business
Legal process controlled by the court
Designed by business owners for business owners
May fall foul of the Insolvency Act 1986, Statements of Insolvency Practice 13 and 16
Completely legal and ethical
Directors Disqualification Act 1986 applies in every case
No Investigation required
Immediate cashflow problems – what’s your next move?
When the cashflow problem is immediate, there is no ignoring it. Contact us now to find a quick solution and relieve the immediate financial pressure so you can get back to making your business work - the way forward, made brighter.
For Free confidential expert advice, you can trust, call your cashflow expert now on 01489 550 440
By Carl Faulds
| 15th July 2013
