Let Begbies Traynor be your guide when advice is needed most
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For any business owner the threat of insolvency must be one of the most worrying situations they can face in their business career.
So it is fortunate that specialist insolvency and business restructuring firm Begbies Traynor is on hand to give calm and reasoned advice and show there are perhaps more options than they think.
As the market leader in business recovery not only in Scotland, but throughout the UK, Begbies Traynor brings a level of expertise more general practices are unable to match.
"For most firms, insolvency is sometimes done as an add on to their other accountancy services, whereas we deal with these type of situations every day," Begbies Traynor partner Ken Pattullo stated.
"Because of our experience, there won't be many situations that we haven't come across before. Whatever the outcome, we can guide business owners through it and reassure them that it is not going to be as bad as they think it is going to be and make the process easier."
The only specialist independent rescue, restructuring and insolvency firm with a presence in Inverness, Begbies Traynor also has four other Scottish offices in Aberdeen, Dundee, Glasgow and Edinburgh, and a presence throughout the UK, giving the firm an unparalleled geographical coverage as well as range of expertise.
Sadly, that expertise may be increasingly called on as the economy continues to deal with the impact of the coronavirus crisis.
Employer contributions to furlough are set to increase to 20 per cent in July, followed by the withdrawal of furlough completely in September, according to the government's latest timetable.
For many businesses, the end of this support may impose a financial burden that could make the business unsustainable.
"The business might be able to go forward on a much smaller scale, but there might be no business at all," he said.
"You just have to take it on a case by case basis, but Begbies Traynor can help in either scenario."
These could involve a range of options, such as Company Voluntary Arrangement (CVA), which allows businesses to enter a voluntary arrangement with its creditors over when and how much of its business debt can be repaid.
"A CVA can help you settle a debt situation by helping you reach a middle ground," Ken explained.
"Entering negotiations with creditors can help you put an end to creditor pressure and tackle debt build-up and a fast track CVA is ideal for agile smaller businesses that are more able to react and readjust."
Businesses which retain substantial asset value may be able to gain some breathing space by entering company administration, protecting the business against any winding up petitions.
For businesses in extreme financial distress and no realistic chance of recovery, a creditors voluntary liquidation (CVL) may be the only option, particularly when it comes to ensuring that creditors do not lose any further money.
Other businesses might turn to a Members Voluntary Liquidation (MVL), the most tax-efficient way of taking money out of a business.
However, Mr Pattullo believes too many business owners are not aware of these options even as an increasing number of directors are likely to face hard decisions as the unpleasant realities of the coronavirus pandemic take effect.
"Businesses might have had some sort of relief with things like rent and tax bills, but that's simply a temporary relief and the debt will have to be repaid at some point," he said.
"If that is the situation you find yourself in, contact us. We have an office in Inverness and you can come and see us or our advisers can go out and see our clients, which is usually the best way because it gives us a chance to see how the company operates."
And he had one more piece of vital advice for business owners.
"The earlier you come to see us, the greater number of options," Mr Pattullo said.
"That's not to say that even if you are facing a winding up petition, there are no options at all and we have had a number of successes in that scenario. But the best thing is not to leave it until the last possible moment.
"If you think you need our help, come and speak to us at the earliest possible stage."
Kintail House, Beechwood Business Park, Inverness, IV2 3BW.
T: 01463 642 851
E: inverness@btguk.com