Key Points
- Management keep control
and shareholders keep their investment
- Relieves the pressures of
the business
- Affordable monthly payment
and profit share
- Unaffordable element of debts legally written
off
- Avoids Administration,
Receivership and Liquidation
- The business may qualify for legal protection
even before the proposals are approved
What is a CVA?
A CVA may provide an opportunity to
restructure a business and rescue it from the brink of Administration
or
liquidation. It is
an agreement to repay
the debts of the business over a period of time and usually has the
benefit of
an element of debt forgiveness.
Whilst
there are many Insolvency
Practitioners qualified to act as Supervisor there are relatively few
who have
the experience and creativity to structure anything other than a very
basic
CVA. Typically, as
all businesses are
different, CVAs are best tailored to the individual circumstances of
the
company concerned.
More….
Does my business need a CVA?
Possible symptoms that may suggest that
your
business has financial difficulties:
- Difficulties obtaining supplies
- At the limit of the
company’s overdraft or funding facilities
- VAT or Inland Revenue arrears
- Difficulty finding enough cash close to
employee pay day
- Constantly fire-fighting to
manage the cash of the business
- Insufficient cash to pay yourself a salary
- Sleepless nights and high levels of stress
- Suppliers or HM Revenue and
Customs threatening to obtain County Court Judgements (CCJs) or to wind
the company up.
