Avoid insolvency

Introduction

A business is insolvent if it doesn't have enough assets to cover its debts, or it is unable to pay its debts as and when they are due.

If you monitor your business' actual performance against the budget and the cashflow forecast regularly, this will give you an early warning of potential problems. You can then take action to avoid insolvency.

This guide provides information on how to reduce the risk of insolvency by suggesting actions to take and sources of advice. It also describes possible outcomes of insolvency for different types of business.

Subjects covered in this guide

• Introduction
• Improve cashflow
• Negotiate with creditors
• Reduce overheads
• Importance of advice when avoiding insolvency
• Possible outcomes for limited companies
• Insolvency outcomes for partnerships and sole traders

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