Surveys reveal that more than 17000 companies have become insolvent during the year 2019 in England and Wales. The long-standing financial crisis due to pandemic coronavirus has put many companies in a struggling state now. In this scenario, business owners are concerned about saving their venture and ensuring survival in the tough environment.
The great news is that there are several solutions that can be applied to businesses that are willing to survive insolvency. The financial crisis doesn’t mean the end of the firm; rather, they require some strategic approach for cash-flow management and resource utilization. The experts at restructuring agencies can help companies to find reliable solutions to insolvency while enabling trading again.
If you are also looking for some reliable rescue solutions to potential insolvency problems, the article below may guide you well. Here we have listed a few common problems of Singapore companies along with some reliable solutions to avoid liquidation of company in Singapore.
Liquidation of company in Singapore – Cash flow problems
Cash flow is better defined as the lifeblood of a company. But at some point, you may struggle to manage adequate finances to support day-to-day business operations. The cash flow problems make it difficult for a business to pay debts. If this problem is not handled on time, a business may experience a state of insolvency.
If you are experiencing inconsistent cash flow at your business terminal, there are so many ways to improve this outlook before liquidation of company in Singapore. The invoice finance option can help you to pay debts by simply selling outstanding invoices to some financing company. The experts can also build a new strategy to improve cash flow with adequate staffing and negotiation with creditors. The debt restructuring strategy can also ensure the survival of the business.
Liquidation of company in Singapore – Creditor negotiations
In case your company is experiencing trouble in maintaining creditor payments, the chances are that you have had a poor track record as a debtor till now. It is important to understand that businesses need to maintain very good records and relationships with creditors as it accounts for overall business reputation online.
In such cases, the insolvency experts can help you to secure creditors backing with adequate Company Voluntary Arrangement. This statutory agreement allows the company to make debt payments in small portions in the long run. In case there is no hope for survival and recovery, the liquidator in Singapore can help you enter the creditors’ voluntary liquidation phase to handle funds.
Liquidation of company in Singapore – Troubles with tax
Taxation can be a trouble for companies that are struggling on financial terms. It is more complicated for UK-based businesses that need to handle PAYE, VAT, corporation tax, and many other challenges. If you fail to pay these taxes, you are subjected to immediate legal action, and it may further lead to compulsory liquidation.
If your business is struggling to pay taxes, it is time to take help from the liquidator in Singapore to explain the situation to HMRC. These professionals can help you develop adequate proposals for handling taxation issues while continuing the trading activities of the firm.