Administration protects a company from legal action by its creditors. However, a bank with a debenture with a qualifying floating charge has to be given 5 business days notice of an appointment and in that time can appoint its own choice of administrator.
Placing a company into administration is a powerful option for businesses that are concerned about the effects of creditor pressure on their business.
During administration the company’s appointed administrator will work to ensure creditors’ interests are protected.
If your company is suffering financial distress and creditors are chasing you for payment there is little time to waste. If you are a director of a company that is struggling under the weight of creditor pressure it is important to recognise that you need not be alone and there are various options available to you.
Creditor pressure can sometimes come out of the blue through the loss of a key contract or a customer going bust leaving you unable to pay creditors as they fall due or perhaps this has been on the cards for some time and your attempts to improve cashflow has not worked.
At Administration we can provide company directors with options at a time when it feels like they have none. We may be able to help to negotiate Time to Pay arrangements with HMRC or even trade creditors.
If creditors are chasing your company for payment contact our experts today. You can arrange a free of charge consultation with one of our specialists. Call us on 0800 254 5494