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What to do when Business Finance is tight?

Insolvency Statistics

 

Is it wrong of us women to expect the same as men when it comes to business: same rights, same pay and same respect? Well of course it isn’t. But the problem is that we are still waiting for society to catch up with modern day women. Those CEO’s and directors of major companies are majority male, white and middle class, struggling to keep abreast of the developments in society. However, women today are showing encouraging signs of growth in business, fronting major campaigns, running companies single handed, bearing children and threatening to overturn the current ideology.

But what happens when it all goes wrong? Finances become tight, business becomes slow and debt starts to rise. The women that I have come across in business are extremely driven, focused and do not shy away from a challenge. But when financial disaster strikes, do we act accordingly? Or do we panic? With children worry about and husbands to moan about, it can be hard not to.

One thing I can say for certain is that most women are not afraid of asking for help when it’s needed. Debt can quickly mount up and leaves no room for postponement. There are options available for those with businesses who are in financial struggle. CVAs, liquidation and pre pack administration are just a few of the processes that can be implemented to write off corporate debt. Insolvencies are becoming common occurrences in recent times, mostly due to the current economic climate

Company Voluntary Arrangement

A CVA is a legally binding contract between a debtor and a creditor that allows the debtor to propose a lower amount to be paid every month. This particular plan is ideal for those who feel that they could continue to trade successfully whilst paying the new agreed fee.

Individual Voluntary Arrangement

In this circumstance, a CEO or director can make the creditor an offer, either a lump sum or as part of an on-going monthly fee. This arrangement lasts for five years, afterwards the remaining debt and interest is wiped clean.

Whatever the situation, financial help can be gained from a variety of people and places. The worst thing to do in a situation of financial struggle is to bury your head in the sand; a trait that most women are lucky enough not to have. Help is at hand and there may be a way to save the business!

This is a guest post by Nicola Winters on behalf of Cooper Matthewswho provide insolvency advice to businesses.