Companies that are worried about their risk of going into administration have been told to seek expert bankruptcy advice and other forms of financial assistance, rather than trying to weather the storm with high-interest short-term loans.
Lee Manning, president of insolvency trade body R3, says struggling businesses do not need short-term fixes in the same way that individuals may do, in order to cope with a short-term disruption to their finances.
Instead, he argues that “survival in the medium and long term” should be prioritised in order to bring the business back to a profitable position.
“We would urge any business that is worried about its long-term viability to consider all of their options or seek the advice of a regulated restructuring professional,” Mr Manning concludes.
Our insolvency practitioners can give bankruptcy advice to managers and directors that is based on the facts, rather than the emotional response that many business leaders might give when trying to deal with their own financial problems.
If you are facing going into administration, such an outside viewpoint might be just what you need to focus on your company’s core capabilities, and restore it to profitability.