Articles by Derek Cooper on ArticleSnatch.com

Personal Finance is as vital as Business Finance in the recession

Wed, 16 Dec 2009 12:04:21 -0500

I frequently come across examples of small business owners or directors who use personal borrowing to supplement their business cash flow. This practise may not strictly be the right way to finance a business but certainly it has for a number of years, been the reality for many businesses. Unfortunately due to the effects of the credit crunch, personal credit is now becoming much harder to obtain. As has been widely reported, lenders are being more careful when considering what and to whom to lend thus affecting the availability of both secured and unsecured loans. In addition, despite interest rates being their lowest since records began, the interest being charged by banks for personal loans is now higher than any point in the last 5 years at between 8-9% APR. This increase means that even if money is available, it is more expensive to repay. Small businesses are less likely to get access to funds with personal borrowing being more difficult to come by. As a result, the life blood of their business dries up and all too often the business is unable to continue to operate. **End Summary** Topics: Personal Finance]]> Business Finance]]> Small Business]]> Insolvency]]>]]> About the Author: ]]> Derek Cooper is Managing Director of Cooper Matthews Limited http://coopermatthews.com. Cooper Matthews specialise in Business Recovery Services giving straight forward insolvency advice for businesses and directors with financial problems. They have significant experience in working with small to medium sized businesses. Free expert advice and information http://coopermatthews.com/personal-debt.html

Top Five Warning Signs your Business may be Insolvent

Wed, 16 Dec 2009 12:00:06 -0500

The first 3 months of 2009 saw difficult trading conditions for many businesses across the United Kingdom. The official Insolvency Service figures showed that in the first quarter of 2009, the number of companies being put into liquidation in England and Wales increased by over half compared to the same quarter in 2008. Many analysts are predicting that the economy is not likely to improve until the end of the year. Given that the pressure on business seems likely to continue for the foreseeable future, it is vital that directors and business owners make sure that they are vigilant about the trading status of their companies. One of the duties of directors is to ensure that the company that they are running does not trade if it is insolvent. If directors allow their company to trade while knowing that it is insolvent, they may be held liable for the business�s debts which are generated from that time onward. If you are busy with the day to day running of a business, it is all too easy to overlook the signs which would indicate that the company is at risk of trading while insolvent. **End Summary** Topics: Liquidation]]> Insolvency]]> Debt]]> Bankruptcy]]> Company Bankruptcy]]>]]> About the Author: ]]> Derek is Managing Director of Cooper Matthews Limited ( http://coopermatthews.com ). Cooper Matthews specialise in Business Recovery Services Advice offering straight forward insolvency advice for businesses with financial problems. They have significant experience in working with small to medium sized businesses. For a free analysis report on the best option for your business recovery visit http://coopermatthews.com/analyser.html

Record Insolvencies - How can Business Phoenixing Help?

Wed, 16 Dec 2009 11:56:57 -0500

According to the latest Insolvency Service figures for England and Wales published on 1st May 09, almost 5000 businesses went into liquidation in the first quarter of 2009. This figure is over 50% higher than the same three months of 2008. Clearly the global recession together with the lack of available credit due to the credit crunch, is having a significant downward effect on business activity. Many analysts believe that the recession will continue until the end of 2009 at least and that its effects will continue to be felt well into 2010. With increasing numbers of businesses finding themselves in serious trouble, more and more company directors and shareholders are faced with a difficult choice whether to invest more of their own funds into the business to allow trading to continue. Even if such funds can be made available, they are best spent helping to develop and improve the current business model e.g. on advertising, marketing, investment in plant etc. The reality is that often these funds are swallowed up financing historic debts. **End Summary** Topics: Phoenixing]]> Pre-Packing]]> Pre Pack Administration]]>]]> About the Author: ]]> Derek Cooper is Managing Director of Cooper Matthews Limited ( http://coopermatthews.com ), and a member of the Turnaround Management Association UK. Cooper Matthews specialise in Business Recovery Services Advice helping you turnaround your business financial troubles. They have significant experience in working with small to medium sized businesses. Visit http://coopermatthews.com/phoenixing.html for more details and Free Expert advice.

Winding Up Petition now often used as Debt Collecting Tools

Mon, 14 Dec 2009 10:18:36 -0500

Winding up (or compulsory liquidation) is the closest thing to bankruptcy for a limited company. Normally the process is initiated by one or more of a company's creditors who feel that the company should be closed and cease trading. The creditor will present a petition to wind up the company at the court (a Winding Up Petition). The company may then be ordered by the court to be liquidated or wound up. Once a winding up petition is ordered, a liquidator will be appointed who will be responsible for closing the business. They will : - make any employees redundant - sell company assets to raise cash to pay company creditors - investigate and report on the company directors (did they continue to trade when they knew it was insolvent). Historically, winding up was initiated by a creditor because they believed that a company was not able to pay its debts. As such, they wanted to protect both themselves and other potential creditors from trading with the business which in the future may not be able to afford to pay them. The company itself would be protected from misunderstandings by the court. **End Summary** Topics: Company Liquidation]]> Insolvency]]> Winding up]]> winding up petiti]]>]]> About the Author: ]]> Derek Cooper is Managing Director of Cooper Matthews Limited http://coopermatthews.com. With significant experience in working with small to medium sized businesses, Cooper Matthews specialise in providing straight forward insolvency advice for businesses with financial problems. More expert advice on Company Liquidation issues http://coopermatthews.com/company-liquidation.html

Why is Company Administration not the best solution to save a failing company

Mon, 14 Dec 2009 10:14:46 -0500

If a company has financial troubles but still has potential, its directors and / or shareholders can put the business into administration by applying to the court. Company Administration gives the business a breathing space from its creditors for a period of up to a year. Any current legal action being taken against the business such as a petition for winding up is cancelled and creditors are prevented from initiating new actions during the administration period. The theory behind company administration is that it allows a business time to make a strategic review and implement often major changes to put it back onto a sound footing. Legally customers and suppliers must be told of the company's position If a company is in administration, current customers may start to worry about the future viability of the business and start to look elsewhere to find more reliable long term suppliers. Just as worryingly, potential new clients may be put off from trading with the business as they are worried about its long term future. **End Summary** Topics: Company Administration]]> Administration]]> Insolvency]]> Debt]]>]]> About the Author: ]]> Derek Cooper is Managing Director of Cooper Matthews Limited http://coopermatthews.com. With significant experience in working with small to medium sized businesses, Cooper Matthews specialise in providing straight forward insolvency advice for businesses with financial problems. More information on alternatives to Administration at http://coopermatthews.com/business-recovery-services-advice.html

Company Administration - how am I affected?

Mon, 14 Dec 2009 10:09:06 -0500

With the economic climate as it is currently an increasing number of companies are going into administration. I have spoken to a number of people recently who are employed by businesses where administration is happening or imminent. These people are quite concerned and want to understand what administration is and what it means for their personal situation. If a company is facing Administration it means that there are serious problems affecting its survival. Usually the business will be in a position where it is struggling to pay the people it owes money (its creditors) and there is a risk that they may try to force the company to be closed. In this situation, significant changes will normally be required for the company to survive. It is normally the directors or shareholders who apply for Administration. However, the process could also be initiated by sympathetic creditors who want to see the business work so they have the best possible chance of being paid and many be trading with the business into the future. The legal protection afforded by Administration gives a struggling company normally up to a year of breathing space from its creditors. **End Summary** Topics: Company Administration]]> Administration Order]]> Business Resue]]>]]> About the Author: ]]> Derek Cooper is Managing Director of Cooper Matthews Limited http://coopermatthews.com. With significant experience in working with small to medium sized businesses, Cooper Matthews specialise in providing straight forward insolvency advice for businesses with financial problems. Free expert advice on Company Administration visit http://coopermatthews.com/administration-order.html

What are the implications of a Winding Up Petition

Mon, 14 Dec 2009 10:00:54 -0500

A Winding Up Petition could have serious consequences for you and your business. It is therefore very important to understand what a Winding up Petition is and the implications of receiving one. Winding Up is the name given to the process of closing a business. Usually the term is used where one or more of the creditors of the business want to force the company to be closed using the process of Compulsory Liquidation. If a creditor is owed more than 750 pounds they have the right to petition for the company to be compulsorily closed or wound up. In order for a creditor to get the company wound up, they must first present an application to the Court. This application is called a Winding Up Petition. The Court will review the petition to determine if it is reasonable. Generally the creditor will have to demonstrate that they have taken reasonable steps to collect the outstanding amount owed to them. If the Court accepts the petition, then it will be issued to the company and advertised in the London Gazette. The company itself then has the opportunity to pay the debt owed or argue that the petition is unreasonable. **End Summary** Topics: Winding Up Petition]]> Winding Up]]> Compulsory Liquidation]]>]]> About the Author: ]]> Derek Cooper is Managing Director of Cooper Matthews Limited and a member of the Turnaround Management Association UK. Cooper Matthews specialise in Business Recovery Services giving straight forward insolvency advice for businesses with financial problems. They have significant experience in working with small to medium sized businesses. More information at http://coopermatthews.com/winding-up-petition.html

County Court Judgment - What should I do about it

Mon, 14 Dec 2009 09:51:36 -0500

Since the autumn of 2008 and the onset of what is being reported as the country's worst recession since the 1930's, more and more businesses are finding that they have been issued with a County Court Judgment or CCJ. The aim of this article is to explain what a County Court Judgment is, why they are issued and what the ramifications of receiving a County Court Judgment are. If a creditor of a business is not being paid in a timely fashion, the first action they will normally take is to attempt to discuss the problem with their errant client and agree a repayment plan. If this method does not work and the client continues not to pay, the creditor's next option may be to employ a debt collecting agent. However, if the debt continues to remain unpaid, the creditor can then decide to ask the Court for help in enforcing the payment of the outstanding debt. This Court issued enforcement is called a County Court Judgment. In order to request the Court to issue a County Court Judgment, the creditor must first apply to the local Court. **End Summary** Topics: County Court Judgement]]> CCJ]]> Insolvency]]> Debt]]> Winding Up]]>]]> About the Author: ]]> Derek Cooper is Managing Director of Cooper Matthews Limited http://coopermatthews.com and a member of the Turnaround Management Association UK. Cooper Matthews have significant experience in working with small to medium sized businesses. Free expert advice and information http://coopermatthews.com/business-recovery-services-advice.html

Is a Company Voluntary Arrangement only half a solution to save a Failing Business?

Mon, 14 Dec 2009 09:48:45 -0500

A Company Voluntary Arrangement allows a limited company to settle its debts with creditors over a fixed period of time, normally 3-5 years. Once the arrangement is completed, the creditors agree to write off any outstanding debt leaving the company to continue to trade debt free. were introduced into the law in 1986 At first glance, a Company Voluntary Arrangement is beneficial for both the company and its creditors. It allows a company which might otherwise have failed and been put into liquidation to continue to trade. In theory, this provides the company the best chance to repay as large a portion of its historic debt as possible. Also, the business continues to provide future custom for its suppliers and remains a supplier to its customers. Despite these potential benefits, many insolvency professionals have long regarded Company Voluntary Arrangements with scepticism because they believe there is a likelihood of early failure. There are no formal statistics which prove or disprove whether this view of Company Voluntary Arrangements is correct. However, in my view, they are not a magic wand for turning round a failing business on their own. **End Summary** Topics: Company Voluntary Arrangement]]> CVA]]> Insolvency]]> Business Debt]]>]]> About the Author: ]]> Derek Cooper is Managing Director of Cooper Matthews Limited ( http://coopermatthews.com ), and a member of the Turnaround Management Association UK. http://coopermatthews.com/company-voluntary-arrangement.html provides more details about Company Voluntary Arrangement

When should Company Liquidation be used?

Thu, 03 Sep 2009 05:01:02 -0400

If your business is in fiancial trouble, or you just do not want to continue running your business, then you need to get good information about your possible options. One area which you will need to consider is company liquidation. The aim of this article is to explain in simple language what company liquidation is and when its use might be appropriate. Liquidation is simply the term used to describe the process of closing a company down. The company's trading is stopped and its assets are sold and turned into cash or "liquidated". There are different types of liquidation depending on whether the company to be closed is solvent or insolvent. There are two simple tests to see whether a business is solvent. The cash flow test and the balance sheet test. The cash flow test asks whether the company is able to pay its creditors as and when the debts fall due. If the answer is no, the company is insolvent. The balance sheet test asks if there are more assets than money owed to creditors. If the answer is no, then the business is insolvent. Members Voluntary Liquidation (MVL) is the procedure used if the company is solvent. **End Summary** Topics: Company Liquidation]]> Compulsory Liquidation]]> Liquidation]]>]]> About the Author: ]]> Derek Cooper is Managing Director of Cooper Matthews Limited ( http://coopermatthews.com ), and a member of the Turnaround Management Association UK. Cooper Matthews specialise in Business Recovery Services Advice helping you turnaround your business financial troubles. They have significant experience in working with small to medium sized businesses. Visit http://coopermatthews.com/company-liquidation.html for more details and Free Expert advice

Business Phoenixing can be a practical way to avoid business failure

Fri, 03 Jul 2009 00:00:00 -0400

With the continuing economic downturn, increasing numbers of businesses are finding it difficult to continue trading. Frequently these difficulties are not because customers have stopped buying completely. Rather, they are buying in reduced volumes and asking for lower prices. In this economic climate if they were not saddled with historic debt many of these businesses could continue to trade profitably. Since the Enterprise Act of 1984, it has been possible to request relief from corporate creditors using a Company Voluntary Arrangement or CVA. With the agreement of creditors, a Company Voluntary Arrangement allows a portion of corporate debt to be repaid at a manageable rate over a set period of time, the remaining debt being written off. A high proportion of early failures of the arrangement has led to much criticism of the process by creditors and insolvency professionals alike. The main argument against the CVA is that the fundamental structure of the business and its management team do not change. Therefore even with the burden of historic debt lifted the reasons for past failure are likely to repeat themselves. **End Summary** Topics: Phoenixing]]> Pre-Packing]]> Pre Pack Administration]]> Company Voluntary Arrangement]]> Cooper Matthews]]> Business Recovery Services]]>]]> About the Author: ]]> Derek Cooper is Managing Director of Cooper Matthews Limited http://coopermatthews.com and a member of the Turnaround Management Association UK. With significant experience in working with small to medium sized businesses, Cooper Matthews specialise in providing straight forward insolvency advice for businesses with financial problems. More expert advice on Phoenixing http://coopermatthews.com/phoenixing.html