Tech Solutions had been trading for over 20 years, but due to ill health, John the owner of the business was unable to work for 6 months. Customers took advantage of John’s absence and stopped paying their invoices on time, this had a detrimental impact on cash flow. Unpaid debts began to mount up and HMRC were threatening to send bailiffs to the office. It was a stressful time for John and his staff. John spoke to his accountant who recommended he seek specialist advice.
We were happy to help, and John’s situation is a common one. He had a Director’s Loan that he was particularly worried about and he saw no option other than to close the business and declare himself bankrupt.
John did not believe the business assets to be worth anything but when we had them independently valued these assets covered the cost of the liquidation in full. Not only this, but because the company was liquidated, John and his staff were entitled to receive large redundancy pay-outs that were paid by the Government’s Redundancy Payment Service. This unexpected lump sum repaid John’s Director’s Loan in full and he even had enough left over to invest in a new business. John is once again employing staff and contributing to the local economy.