2008 is expected to see a rise in the number of companies experiencing insolvency but there are a number of steps and precautions that you can take to ensure you didn't begin on the slippery slide into insolvency.

Insolvency – The Do's And Do Not's

How you respond to the threat or likelihood of insolvency is the key to overcoming the problem. Here are some top tips to ensure you don't experience the pinch of insolvency this year:

Insolvency Tip 1 – Negotiate With Your Creditors

Don't bury your head in the sand. Make sure you negotiate with creditors as any company owed more than £750 can insist upon insolvency. If possible, try to find a compromise about a payment structure. Your creditors are unlikely to call for insolvency if you can show them a payment plan.

Insolvency Tip 2 – Improve Cash Flow

The cash flow of your business is of paramount importance. There are a number of methods you can employ to improve cash flow and avoid insolvency. These include billing your customers promptly, avoiding the pitfall of over-trading, re-negotiating your credit limit with suppliers and trimming your inventory. These are just some of the methods that can stave off insolvency.

Insolvency Tip 3 – Reduce Your Company's Overheads

Be sure to review overheads regularly. Cutting the overhead costs of things like marketing, advertising and research and development are important in diminishing the likelihood of insolvency. Staff is another area where overheads can be cut. The threat of insolvency can be abated by cutting down on overtime and reducing hours.

When it comes to insolvency the all important aspect is to take the advice of professionals. When insolvency looks likely for a business, they must seek the advice of relevant professionals such as lawyers and accountants

Talk To Varden Nuttall About Insolvency

Varden Nuttall has been established for over 15 years and is dedicated to helping people in financial difficulty find a debt management solution through an Individual Voluntary Arrangement (IVA). Employing 90 people, including trained and skilled IVA administrators, we are one of the largest IVA companies in the UK and handle over 3% of all IVA applications. To find out more about the company, or to make an appointment to talk about putting an IVA in place, call us today on 0800 031 9802 or fill in our online enquiry form.