As this unprecedented crisis affects us all personally and professionally, we wanted to send out a brief message to our friends and colleagues.

All the political and economic indicators tell us that we are probably looking at some turbulent trading times over the next two or three years, with the uncertainties regarding Brexit and the possibility of a General Election (with or without a General Strike!)

Two Birmingham-based company directors were sentenced to imprisonment on 31st July 2017 for unlawfully diverting company funds to their own bank accounts in advance of a winding up petition. The case of the husband and wife duo is a classic example of how not to handle an insolvency situation, and how dishonesty and malpractice made a failed business situation drastically worse for everyone involved.

Running into problems with your business is by no means a pleasurable experience. However, problems do not have to spell the end of your venture. The good news is that you could potentially save your business by following these easily-applicable steps.

1) Call An Insolvency Practitioner

Your business may not be anywhere near insolvency. However, if you are facing long-term cash flow problems, or difficulties making debt repayments, this could be the ideal time to get in touch with an insolvency practitioner. These professionals have an objective view of your business, and they know the signs of insolvency before it occurs.

Two options available to a business that requires financial assistance are business rescue (i.e. Administration) and winding up (i.e. Liquidation). Business rescue usually involves a company receiving assistance in the form of additional finance or time to repay its debts to enable it to continue to trade. In a Liquidation the company would stop trading and company assets would be sold off before the company is finally dissolved.