Early action is the key
In conjunction with the Institute of Chartered Accountants in England and Wales (ICAEW), WSM Marks Bloom have produced a guide to restructuring and insolvency, the emphasis of which is that early action is the key to avoiding or surviving financial difficulties. The guide is about how to cope with difficult situations, recognising issues early when they arise, and seeking the right advice at the right time from the right professionals.
Running a business is rarely simple and growth rarely proceeds in a straight line. The key is distinguishing between a temporary dip and terminal decline. The guide looks at the ‘decline and recovery curve’ which shows how a business in trouble finds liquidity getting steadily worse over time. There comes a point when formal insolvency is the only option.
Being aware of the dangers from an early stage and knowing whether they are at the start of a long-term decline, or merely going through a short dip, can help owners take the early action that can save their business. By the time a situation of distress has developed into a full-blown crisis, there are fewer options open to the business owner, and to the insolvency practitioner.
In general, practitioners would always rather be approached when a business is further up the decline curve, with problems identified at an earlier stage and more time and resource available to help with the recovery. However, even at a later stage, it is still better to seek advice and help from a licensed insolvency practitioner than to do nothing.
WSM Marks Bloom specialises in offering insolvency and debt recovery services to businesses, whether companies, partnerships or sole proprietors. The firm is committed in particular to saving businesses by negotiation with creditors, using the firm’s enormous wealth of experience in the small business sector. As the guide demonstrates, the chances of a rescue succeeding are always enhanced when financial difficulties are recognised sooner.
The insolvency practitioners at WSM Marks Bloom, Andy Whelan, Adam Nakar and Doug Pinteau, are all licensed by the Institute of Chartered Accountants in England and Wales (ICAEW), the largest regulator of insolvency practitioners in the UK.
A copy of the guide can be found on the firm’s website at http://wsm.co.uk/insolvency/other-resources and printed copies are available on request from the firm’s office.