Company Money Worries, the sister company of Consumer Money Worries finds itself on the front line of a financial crisis.
We are seeing a spike in the numbers of directors seeking help and support due to the outbreak of COVID-19.
Pre COVID-19, Company Money Worries had helped 100’s of businesses with cash flow projects, money saving tips for businesses and restructuring.
Our immediate response to a business in financial distress is “how can we help and support with the business with continuing to trade?” “How can we assist the business with financial management and arranging Time 2 Pay arrangements with the HMRC?”.
Unlike a lot of companies in the industry, our objective is not to immediately liquidate the business and write the business debt off; it is to try to find a way of trading through in a solvent way.
We are completely aware that not all businesses can be rescued. We understand that sometimes closing one business and starting again is not only better for the director but current and potential future businesses that are being negatively impacted by the insolvent business.
Front line of a financial crisis
COVID-19 has turned everything on its head and being on the front line of a financial crisis, we can see just how it is going to harm businesses for months and maybe even years to come.
We find ourselves developing new ways to trade and attempting to working under new conditions and in new environments.
Changing and evolving with COVID-19 does not get us away from the fact that we as business leaders face financial distress and hardship.
Analytics released by Red Flag has already highlighted the devastating financial impacts of COVID-19 compared to last year’s insolvency figures. https://www.redflagalert.com/news/risk/covid19-will-cause-unpaid-business-debt-to-double-to-8-6-billion
In 2019 over 17,000 companies went out of business which resulted in approximately £4.3bn worth of debt being wrote off. It is predicted that this level of debt will rise to a staggering amount of £8.6bn and will continue to rise throughout 2021. Who knows when this will hit its peak?
What is more concerning is that not only were we seeing a high number of businesses close pre COVID-19, Red Flag have highlight data showing that on top of the business closures there are a further 490,000 businesses that face financial distress.
The corporate debt levels are unprecedented and could rise beyond £15bn, with an estimated business debt write off of almost £24bn between now and the end of 2021.
Company Money Worries are committed to helping, guiding and supporting directors and businesses back to strength.
We provide free advice that instills honesty, integrity and commitment to our clients.