Wrongful trading

If you would like to talk to us in person about wrongful trading and what this means to your company please call us on on 0800 804 7447 to book a free confidential Consultation.

You can also fill in our enquiry form and we'll get back to you

Trading whilst your company is insolvent is illegal. It can bring about a personal liability for directors who continue to trade despite being aware of the insolvent position of their company.

How can you tell if your company is insolvent?

Balance Sheet

Have a look at your most recent balance sheet. If the liabilities outweigh the assets the company is insolvent. This doesn't mean you have to cease trading, however, it does mean that you need to closely review your cashflow.

Cashflow

This is the second definition of insolvency. Is your company able to pay it's debts as and when they fall due? This is probably the reason that you have come to this website. Often the reason directors contact us is because the Company has simply run out of money.

Cashflow pressures can come from many sources. It might be that a customer has gone bust and left a debt which won't be paid, creditors are seeking payment of monies owed faster than anticipated, or it might be that your funders will no longer support the business.

Judgements

Do you have any outstanding judgements in excess of £750? Your creditors could use these to enforce the company to be wound up.

What does wrongful trading mean to you?

As a Director, you have a duty to act in the best interests of the Company and its shareholders. Taking on additional credit at a time when the business is insolvent could place your personal assets at risk.

If you feel that this reflects your current position, do not delay - call us to discuss the options open to you. It might be that we can suggest a way for you to keep your business going forward without the need for a formal insolvency procedure.

Remember, the first meeting is free and confidential. You will not be forced into Liquidation or Administration and our meeting won't be reported to anyone else.

Still have questions? Call us on 0800 804 7447 or fill in our enquiry form and we'll get back to you.