Is Your Small Business Under Pressure, at Risk or Insolvent?

company rescue

Warning signs that your business might need professional help

Is this your company?

If you can recognise too many of the following signs then it is likely that your business is probably under pressure, at risk, or it could be insolvent. Look through these signs, print off this page and tick those that apply. If you get an uncomfortable feeling that these warning signs are familiar then you should get professional advice.

Top Insolvency Warning Signs

  • Fire fighting – you don’t get your work done because of lack of focus.
  • There is a lack of business / accounting information or wrong information and you often end up concentrating on non-essential issues.
  • “Compartmentalising” problems – in other words do you deal with one creditor or business critical problem and ignore others?
  • Do you blame the: Bank, Creditors, Debtors, Accountants, Advisors, Everyone but YOU for your cashflow pressure?
  • You don’t have a business plan. Your company doesn’t have regular team, management and board meetings.
  • You don’t like changes.
  • Directors are taking big salaries and expenses. (“It’s my business anyway!”)
  • You think that one more sale, one more contract, one big customer payment will solve the cashflow problem? (It won’t).
  • You have overdrawn director’s current accounts.
  • Your company cannot get new credit or extend existing credit.
  • You do not pay to creditor’s terms.
  • You have had red warning letters.
  • Creditors regularly phone you chasing payment.
  • You spread credit around by opening accounts with new suppliers.
  • You have had a Court summons or judgment.
  • You have arranged deals with creditors to pay them over time.
  • You have broken promises to creditors.
  • You have had visits from Sheriffs or bailiffs.
  • You have had a statutory demand or a winding up petition.
  • You are not paying the monthly PAYE & NIC deductions on time.
  • You have had penalties from HMRC
  • You have not prepared or filed the required PAYE paperwork (P35, P11D, P60) with the Revenue.
  • You are not filing VAT returns or paying the VAT due on time.
  • Your company has had a VAT surcharge.
  • The local tax collector has passed your file to the enforcement office or the debt recovery unit.
  • You have done deals with the taxman to pay back arrears over time. (Time to pay deals).
  • You have failed time to pay deals with the taxman.
  • HMRC has taken legal action against your business. It has issued a CCJ or worse, a winding up petition.

It is a lonely place to be when a business becomes distressed but it is important to take advice. Many professionals will talk for free to directors to see if they can assist.

About the Author: KSA Group are corporate recovery experts and Licensed Insolvency Practitioners. Simply, we help business leaders make the right decision in difficult circumstances. We will meet company directors, free of charge, to go through all the options. Please visit our main site, Company Rescue, for online insolvency advice.

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This article is one of the excellent contributions from small business owners, decision makers and professionals.

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  • Cheers, Sheena!

  • This is a nice resource for a reality-check on every business there is. I think this is very useful, especially during company evaluations. Your ideas and insights are valuable. Thanks for sharing this post.

  • Marc

    I think you covered every aspect…
    But I am amazed how some companies with these symptoms can keep up so long