
My Business Is Failing – How Can I Save It?
My Business Is Failing – How Can I Save It?Our client was a growing ITC consultancy, it provided solutions, software, service and support. Growth was too fast for the working capital available and whilst it was profitable cashflow was always a problem. Then sales slowed and the debt wave coming along behind them, threatened to wash over the business. The company was encountering further financial difficulties because of lower than forecast sales, high overheads, a substantial investment in a new CRM programme that was not quite market ready, a small number of bad debts from insolvent clients and incomplete projects.
A classic British story of being undercapitalised, profitable but brought down when HMRC stepped in. Having had several time to pay deals over 2 years, the non payment of a large VAT bill brought the HMRC Debt Management Unit into play. No further TTPs would be provided, the company needed to refinance and EFG (Enterprise Finance Guarantee Scheme) loan was raised to pay off taxes and creditors. What next? The new software took still longer and then the MDs father provided funding to tide the situation over, until next time.
What was the KSA Rescue Strategy? – Company Voluntary Arrangement
We addressed this by setting out a strategy that would restructure the taxes, the trade and landlord debts. We assisted the board look at structural issues too we suggested that the company
The CVA Deal Was As Follows:
The CVA was approved, in January 2012, but even with the CVA removing debts, tendering for new work led to problems. This is because there is no credit rating awarded to companies in CVA. So after 10 months the directors managed to raise private investment and the CVA creditors agreed to a one off payment of £100,000 to close the CVA early.
Director Mr J, is happy to act as a referee for KSA Group as he is delighted to say the business is doing really well now that the company has been restructured.
Talk to THE CVA experts now. We have written more company rescue deals than any other company in the UK and we have referees to prove it. Call 0800 9700539, email help@ksagroup.co.uk or fill out our contact form.
My Business Is Failing – How Can I Save It?
My Business Is Failing – How Can I Save It?