Business Rescue

If you’re struggling with unpaid debt, and it looks like you’ll have to close your business, it can be a difficult time for both you and your staff.

Some business owners see business closure and liquidation as their only options when debt builds up. However, there is another method that may be better for you: business rescue.

What is Business Rescue?

Business rescue involves giving a business the support it needs to turn its fortunes around and avoid closure altogether.

The methods we help with involve everything from merging with another company to taking tough decisions to reduce outgoings.

Business rescue is much more effective if you get in touch with us before too much debt builds up. We can help you manage your financial situation in a number of ways, all of which will at least give you more time to reduce your debt, without needing drastic measures.  

Our services can help you detect issues before it’s too late, so even if your business is debt-free and currently working well, any downward trends need to be identified and dealt with in order to future-proof your finances.

Types of Business Rescue

Business rescue takes many different forms, but it can be separated into four main types:

1. Informal workouts

Informal workouts are voluntary, private negotiations between a company and its creditors to restructure the company’s debt. These agreements are typically out-of-court settlements aimed at reaching a mutually beneficial arrangement.  You may choose to sell surplus assets to use towards the settlement deals.

2. Formal Insolvency Procedures

Moratorium is a formal insolvency process aimed at providing breathing space to a company coming under immediate pressure where there is a workable solution to trade out of its current position.

Company Voluntary Arrangement (CVA) is a more structured and rigid process reaching a global agreement with unsecured creditors to provide a company the opportunity to trade its way out of its debt trap, using future profits or opportunities to repay as much of its debt as possible over a fixed period of time.

Administration is a formal insolvency process aimed at rescuing a company or achieving a better outcome for creditors than immediate liquidation.

3. Debt Restructuring

Debt restructuring involves reorganising a company’s debt to improve its financial stability and operational performance.

4. Corporate Turnaround

Corporate turnaround involves strategic changes to a company’s operations, management, and structure to restore profitability and solvency.

How to Prevent Insolvency

Naturally, if you are able to clear debt yourself, and avoid insolvency, business rescue is no longer needed. However, many business owners don’t know the best ways to clear their debt, and often make the issue worse by investing in the wrong solutions.

That’s where we come in. We specialise in helping companies who are struggling to stay on track with their finances.

We can help you find funding, accelerated services, and other solutions that improve the efficiency of your business without costing more. This means that you won’t be making your business worse, just to avoid a build-up of debt.

We see many cases of businesses who avoid insolvency but do so much damage to their efficiency in the process that the company falls way behind their competitors. Our solutions avoid this, you’ll not only be debt free, but also more successful moving forward.