Tenable Solutions Limited,
Unit 3 Thornes Office Park,
Monckton Road, Wakefield,
West Yorkshire
WF2 7AN

Tel: 0844 855 0 225
Fax: 0844 855 0 229

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About Bankruptcy

Small business owners are extremely susceptible to bankruptcy these days, primarily because they put a huge portion of their savings or income into the business, and if the business doesn’t give them a return on that investment, they are left with nothing. These are prime examples of people making financial decisions based on emotion rather than hard facts. You simply can’t keep pumping money into a business that isn’t certain to make money, no matter how much you want the business to survive. Many entrepreneurs are given the choice, either lose your business or lose your home and any assets you have. Obviously, most people ultimately choose to sacrifice their business instead of their lives, but it is nonetheless a very difficult decision to make. To liquidate a business that you have spent years of your life working on can be crushing, and we don’t want to see people having to make this sort of decision, which is why we believe that prevention, not cure, is the best way to fight financial problems.

If your business appears to have been hit hard by the financial whirlwind which has swept across the country, all is not lost. Despite what Gordon Brown promised, boom and bust phases of the economic cycle still exist, it is purely a matter of riding them out. Very few people predicted the collapse of the banks and the huge credit issues which most businesses now face, least of all small business owners, but these periods are almost inevitable. Many businesses survive through these periods, possibly because their business does not suffer when luxury spending decreases, or because their business has enough financial clout to be able to withstand some temporary losses. Small businesses are very rarely in this privileged group however, and so they must look to different and creative ways of avoiding spiralling levels of debt.

Temporary loans, debt refinancing, debt consolidation; any of these options could give your business the chance to survive the storm and continue trading. Which option you choose - there are many – largely depends on the type of business you own and the future of your business. If you are experience high levels of debt already, you will need to look at refinancing or consolidating your debts so as to make them more manageable. It is highly likely that you will be able to work out a deal with your creditors that will allow you to pay back your loans over a longer period of time, for a smaller monthly payment.  These types of deals are great ways of ensuring that your business doesn’t simply go further into the red every month, but the also require a great deal of financial restraint and a strong plan of action for the future. You will need to be able to convince your creditors that your business will bounce back from the difficulty it is in at the current time, which is no easy thing to do. Hiring a professional firm to handle the process of renegotiation could give you more of chance of reaching a favourable deal with your bank.

Taking out a temporary loan could allow you to continue trading through a difficult period; however, you will essentially be borrowing money in order to borrow money, meaning that your debts could mount up very quickly indeed. If you are going to take out a loan, you need to be absolutely sure that the loan will help rather than hinder your business. It is also important that you talk to the loan company about your situation, so they know exactly where the money is going. By explaining your financial situation, it may harm your chances of receiving a loan, but it could potentially make the bank give you a more favourable deal to ensure that you will be able to pay it back.

see also Bankruptcy FAQ

see also Bankruptcy or IVA

see also Bankruptcy

see also IVA

see also CVA

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