Business Support During Covid-19
Businesses up and down the country – and indeed across the world – are facing unparalleled challenges as COVID-19 coronavirus continues to hit the global economy and enforce restrictions on movement.
Increasingly strict social distancing regulations have led to many businesses being forced to close to halt the spread of the virus, while many more have had little alternative but to also temporarily cease trading as consumer demand plunges. With this sudden and unexpected drop in income, businesses of all sizes and across almost every industry, are left wondering where this leaves their company and questioning how long it can survive under the current circumstances.
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Government help announced
The government has responded to this crisis by announcing an unprecedented set of measures designed to ease the immediate financial strain on businesses suffering a downturn in trade during this time. These include easier access to loans and other forms of emergency finance, the chance to enter into a Time to Pay arrangement with HMRC to lessen the burden of outstanding tax arrears, as well as protection for employees through the Coronavirus Job Retention Scheme.
While these initiatives will represent a welcome boost for many, allowing the company to obtain some short-term financial stability while the situation progresses, for others the measures will not go far enough to stem the losses being experienced. In particular for those who were already experiencing financial worries before the coronavirus disrupted business, this could be the final straw.
Business rescue options
There are ways of rescuing a business should it be deemed viable going forwards. Options such as administration or Company Voluntary Arrangements (CVAs) could provide some much-needed relief and business stability; however for those experiencing more acute financial problems, there may be no alternative but to bring the company to an orderly wind down in order to prevent the situation escalating further, leading to additional financial losses being suffered by the company and its creditors.
This is best achieved through a Creditors’ Voluntary Liquidation (CVL); the whole process is administered through a licensed insolvency practitioner who will take charge of the company, deal with its creditors, and ensure it is closed down in the most appropriate manner possible.
Expert help in the face of COVID-19 challenges
If COVID-19 challenges have pushed your business to breaking point and you would like to discuss the possibility of placing your limited company into liquidation, call the team at UK Liquidators where one of our expert advisers will be able to talk you through the liquidation procedure and arrange a no-obligation consultation for you with a fully licensed insolvency practitioner.