05th Jan, 2013
Every Insolvency Practitioner ("IP") would agree with me when I say, it is better to get advice sooner rather than later.
If your business is experiencing cash flow pressure, then the sooner you seek advice to understand your options, the more options you are likely to have.
Of course, we would say that, it is a self serving point of view, as we are looking for business opportunities to provide insolvency services, so we are hardly likely to recommend delaying coming to see us for as long as possible.
And the sad fact is that that is the normal scenario, as we are the last resort, the last port of call, the end of the line. This is a mistake made time and again, and a frequent case of missed opportunities, where a possible window of recovery has closed, due the situation deteriorating beyond the point of no return.
If you wait until a winding up petition has been issued, or a judgement awarded, or the bank calling in the facility, it make the prospects of recovering the situation so much harder.
If you see trouble ahead, but have grounds for believing that your business is viable, given some breathing space, or given a fresh start free from past mistakes or problems, then the prospects of negotiating the troubled waters successfully are improved dramatically by seeking the expert guidance of an experienced and commercially minded IP who can assess the situation and offer a range of options based on the legal and commercial situation that applies.
It costs nothing to pick up the phone for an off the record chat in confidence, or an initial exploratory meeting, and as the old saying goes, the early bird catches the worm.
Over the twenty years of my career in the Insolvency Profession, the amount of times I have met with clients only to hear them say "I wish I had met you a year ago", well I have lost count.
The worst thing about dealing with financial distress is the fear of the unknown, and burying your head in the sand is not a solution. In fact, things are usually not as bad as feared, and if there is a good business at the heart of the matter, and it is worth fighting for,then you need to understand the situation, and the sooner the better. If the situation is terminal, then it's a damage limitation exercise, and the sooner you start planning your exit strategy the better.