We were approached by the director of a small company which made insulation jackets to see how we could help her get out of the dire situation she was in.
Cash flow problems caused this company to turn to a rogue invoice factoring firm which the Director refers to as ‘one of the biggest mistakes I have ever made’.
The firm didn’t make any real attempt at collecting from debtors and this meant there was no money available for the company. Ultimately, they made the cash flow problem 100 times worse!
Forbes Burton was appointed to assess the company to see if it was worth continuing, the poor cash flow meant debts were starting to increase, this caused huge concerns for the Director, leaving her with sleepless nights and constant worry.
Our primary concern is always our client and with that in mind we thought it was best for the Director that she close her existing company, things weren’t going to get better, not whilst the factoring firm were involved.
We assisted the Director in making a decision about what to do by making sure she had all the facts and options available to her. Realising she didn’t want to deal with the stress and problems of running a company any more she decided it would be best to close it down.
In this situation the company didn’t have the funds or assets to pay for a formal liquidation, so it was best to use administrative dissolution; we ended up saving her over £4,000 in liquidation fees.
Following the successful dissolution of the company the director is now working elsewhere free from the burden of an indebted company and the stress that comes with it.
We're here for you.
As a dedicated team of Advisers and Consultants our aim is to help you fix the issues and solve the problems within your business.
Find out more →
