When a company’s liabilities exceed their assets and they are unable to repay all money owed to creditors (even if they were to sell off all assets), they are legally insolvent. The consequences can be severe and in some cases, a company may not be able to recover, so it’s important to be aware of…
Tag: business insolvency
Business Insolvency: The Options for Businesses Facing Financial Difficulties
If your business is insolvent or experiencing financial difficulties, this doesn’t necessarily mean the end. Financial difficulties can be part and parcel of running a business, so if you are concerned about your financial position, it’s important to seek advice from a licensed insolvency practitioner. Liquidation or the winding up of your company is not…
Business Insolvency – What to do if Your Business is Insolvent?
It’s quite common for people to ask what business insolvency really means. The simple explanation is that a business is insolvent when they can no longer afford to pay their debts as they are due, or if their liabilities exceed their assets. However, as there is so much confusion around the term, it is not…