Company insolvencies are projected to rise in the the next 12 months. The Business Rescue Service give their reaction.
(1888PressRelease) January 06, 2011 - The Business Rescue Service gave their reaction today to news that company insolvencies are likely to soar during the next 12 months. The association of business recovery professionals, R3, are predicting an even greater increase in the number of UK company insolvencies in the coming year. They point to research indicating one million firms are experiencing 'financial distress' with 850,000 UK firms currently suffering from decreased profits. 750,000 firms were found to have experienced a drop in sales volume and 32% had seen their market share decline. Against this background, R3 were predicting a rise of an extra 1,000 companies to enter insolvency in 2011.
The Business Rescue Team support businesses across the UK through immediate guidance on legal solutions to serious trading difficulties. Composed of business recovery professionals with a combination of over 20 years experience, they advise businesses on tax arrears, company voluntary arrangements, administration and pre-pack administration and voluntary liquidation. As such sole traders can gain help for Individual Voluntary Arrangements (IVAs) and Debt Management Plans (DMPs).
"We offer a real-time, real-life support service to companies and sole traders who are finding trading conditions are no longer profitable, or who are still struggling to achieve initial profitability. It could be finding solutions to escalating tax arrears, buying more time for a return to profitability using a well arranged CV or helping directors or managers to understand whether they could use pre-pack administration to gain a fresh trading start. We also offer advice about commercial finance and have relationships with major commercial finance houses."
The team are expecting a fresh wave of general company insolvency enquiries from company directors, managers and sole traders; years of experience has fostered a particular awareness of the pressures company directors often face.
"Company directors face a number of legal obligations and responsibilities for which they can be held personally liable under civil or criminal law. At the same time, directors may also feel under pressure to retain valued staff in the face of serious financial problems and they also need to have clear and reliable advice about their personal liabilities. As such, we are acutely aware they need access to effective and cost effective remedies."
The team also frequently work to support sole traders looking for immediate help, and their advice will also address both personal and business issues:
"Sole traders can feel somewhat isolated when facing serious business problems. However, we are there to offer essentially the same type of advice as for company directors on their personal and business liabilities and all the legal avenues open to them to begin to resolve the problems in a responsive, cost effective manner. With these clients, personal liability may prevent them from seeking help earlier but again we can offer precisely the type of specialist advice that is vital to their situation".
For advice on any aspect of company insolvencies, concerned entrepreneurs should contact the team on 0845 468 2395 or send an email from www.businessrescueservice.co.uk.
Company insolvencies are not the only stage at which they can help; businesses of all sizes can gain reliable advice tailored solely to their best interests at any stage of a problems.