What you can do if your business starts to go into financial trouble
Some business are concerened that COVID-19 could cause a drop in sales, as we have seen FlyBe go under because of this.
Clearly we hope no more businesses go into administration due to the impact of COVID-19 on business, but it is quite possible. Your creditors might be persuaded to agree deferred short-term payment holidays if we can show the issues are directly related to COVID-19, especially as the current forecast from Government and the Bank of England is that this is likely to be an acute but short-lived phenomena.
A legally binding payment plan agreed with creditors such as a Company Voluntary Arrangement is an option for companies who need more time to repay their debts.
GET IN TOUCH
If your business needs legal support with any issues arising from COVID-19, please get in touch with Nicola Holton.
All information in this document is accurate at the time of writing. It is meant for general information only and is not legal advice.