Corporate Recovery

ICAN Finance rise to the challenge	even in extreme circumstances

Almost by definition, as commercial finance brokers, we get clients who are looking to re-finance because they are in financial difficulty. Very often we can sort out these problems by restructuring the business' finances but sometimes things have already gone too far - but all may not lost.

If you are in this situation you need to act quickly in order to keep as many options open to you as possible. The first step should be to contact ICAN Finance who will undertake a thorough review of your current situation. There is more detailed information in this section including case studies, but don’t delay, call today!

The rest of this section is aimed at giving you an overview of the options and issues involved in corporate recovery and insolvency. These may help you assess the state of your own business but every case is different and you should still take advice.

Is My Business Insolvent?

The law tends to be very black and white on this issue but inevitably, in practice, there are many shades of grey. In the eyes of the law, if you can't pay your bills “as and when they fall due,” the business is insolvent.

In accounting terms, on your balance sheet, if your current liabilities are more than your current assets, the business would be seen as insolvent. Accountants often express this as a ratio (the current ratio or acid test) but now many industries have a norm where this ratio is less than 1:1 – so technically insolvent!

In practical day to day terms, many businesses exist in a perpetual lack of cash flow and seem to struggle on year after year. There are inevitably dangers in this. If one or two creditors take action, it could sink the whole ship. Banks, not known for their patience in these circumstances, may feel uncomfortable and reduce or withdraw facilities and ultimately they could appoint receivers.

Although many businesses suffer these sorts of pressures day to day there inevitably comes a point where something has to give and it is important for you to act before that breaking point is reached. If your business cash flow is tight call ICAN Finance for a confidential review.