Menu
Faced with the difficult decision to close your company you will want to seek expert advice and guidance, for most that will involve contacting an Insolvency Practice.
A Google search shows the market is competitive and for good reason (we will explain why below).
It is likely when you speak to an IP they will advise closing your business using a Creditors Voluntary Liquidation (CVL). This is because of the following benefits:
Avoiding Legal Action: A CVL is often chosen to avoid more severe consequences like bankruptcy or forced liquidation by creditors. It provides a formal, legal structure to manage the closure of the company.
Creditor Relations: It allows for the proper management of creditors, avoiding direct confrontation and reducing the risk of legal actions or creditor pressure.
Protection from Personal Liability: If you have acted in good faith, opting for a CVL can help shield directors from personal liability for company debts, though this is not always guaranteed, particularly if directors have been negligent or have broken the law (such as trading while insolvent).
Speaking with many business owners who utilised an insolvency practitioner to close their businesses, we found that their experiences were generally positive.
They were satisfied with how it went and the service provided, but this is not the whole story, read on…
What we are going explain may surprise and even shock you, many we work with are understandably angry about being misled and unwittingly caught in a trap.
To understand better let’s breakdown how an IP receives it’s revenue.
First Payment: This is the fee the IP charges for closing your company.
Second Payment: Is actually two revenue streams:
Revenue Stream One – The IP is paid a management fee for managing the process of closing the company and is paid from the monies they collect that the company is owed.
Revenue Stream Two – The IP retains a percentage of the money they collect this includes the repayment of any director’s loans.
For the IP, the second payment is where the big money is, in most cases, worth many times more than what they initially receive for closing the company.
Once you know this you can understand why IPs are keen to attract company owners looking to close their companies and why the fees are so competitive.
Not quite a loss leader but you grasp the point I hope that in order to unlock the big money that is in the Second Payment they need to secure clients for the First Payment..
Initially the IP is working for you to close your company, everything is all smiles from the IP. But…
Once the initial steps have been taken to close down your company then the IP can move on to make the big bucks, collecting money owed to the company, now the IP is no longer working for you but working on behalf of the companies creditors and of course for themselves.
The first you may become aware of this change in loyalties is when you get a letter or email demanding you repay your directors’ loan, something you most likely will know nothing about.
We’ve helped hundreds of company owners by significantly reducing director loan payments, negotiating with creditors, and ensuring the company is closed correctly to ensure nothing comes back as a problem.
We help achieve a seamless transition when closing one company and opening another (Phoenix) and have been able to solve many other often complex issues.
We are problem solvers and fixers; if you are in a tight spot, we are a great team in your corner. Our experience and knowledge are backed up by specialist teams covering accountancy, law, finance, creditor negotiations, debt collection services, and sales and marketing. These teams are experts and are there to help you navigate out of your situation.
We recognise that this is a highly stressful period in your life, and the pressure you are under is likely affecting your company, home life, and well-being.
When you partner with us, we can relieve you of much of the burden, quieting the chaos around you and give you the chance at last to take a breath, take stock, and think more clearly. Rest assured, your pressing challenges will be managed by professionals who tackle these situations daily, we have your back.
Are you ready to regain control and get your life back? If so, we can help.
To ensure we offer the best possible advice and are as effective as possible in achieving the best possible outcome for you, we need to know where you are in the process of closing your company; we can then get the right team of experts to contact you.
Please look at the three scenarios below and click on the one that best matches your current stage in closing your company.
Complete the simple form (it takes 30 seconds), and we will call you within 48 hours to learn more about you, your company, and what brought you to our site today.
Our help falls into three distinct groups, which can be categorised as follows: