Having to consider putting your company into Creditors’ Voluntary Liquidation (or CVL) is not something any Director sets out to have to do…
Key Business Information
- Turnover £1.2 million
- Trading for approximately 18 months
- Significant VAT & PAYE arrears with little other debt
- Cash flow difficulties as a result of rapid initial growth
How We Helped
This company experienced phenomenal growth throughout its first 18 months of trade, securing a number of high value ongoing contracts during this time. Unfortunately, the company grew so quickly that it suffered the effects of overtrading and fell into arrears in respect of its VAT and PAYE.
If the company had ceased to trade it would have lost its hard won contracts and as such, it was essential to find a solution that would allow the company to continue.
You can find out more about the Company Voluntary Arrangement process here...
We reviewed the company’s financial position and its cash flow forecasts and based on these it was apparent that the company could support quite substantial monthly payments. This allowed us to formulate a CVA proposal for the company.
With the proposal drafted, we negotiated with HMRC to demonstrate that a CVA was the best option for all parties and based on this, the CVA was accepted. The Company continued to trade and make its monthly CVA payments with the director free of the stress of the company’s unresolved arrears.
