We have seen a number of cases recently where directors have not sought early advice when their company has entered troubling times and potential recovery options have therefore become limited.
A common reason for this seems to be a feeling of failure on the part of company directors and a resultant desire to avoid seeing an Insolvency Practitioner.
Businesses can, of course, get into trouble for numerous reasons beyond the control of their directors – a significant bad debt and a devastating adverse change in market conditions are recent examples we have seen. In both examples, the directors can hardly be seen to have failed even though it may feel that way to them.
It’s prudent to talk
We would always encourage directors to seek our advice at the first sign of trouble. Seeing an IP at an early stage is not an admission of failure – it is an entirely prudent step when a company is facing difficulty and can often make rescuing the company more feasible.
There is no judgment here – our door is always open and the kettle is always on (so to speak!) – and indeed initial consultations are free and without obligation – directors have absolutely nothing to lose and possibly much to gain by having a chat with us.