Benemack - insolvency and bankruptcy advice » Insolvency Evaluator for Companies

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A) PAYE and VAT

1. You are behind with PAYE and VAT payments and have received penalties.
2. You have entered into ‘deals’ with the tax authorities to pay arrears by instalment.
3. The tax authorities have instructed bailiffs to distrain on the company’s assets.

B) Suppliers

1. You pay your suppliers outside the agreed credit terms.
2. You are ‘on stop’ with some suppliers.
3. There are County Court Judgements or Statutory Demands against the company.

C) Debtors

1. You do not have a dedicated credit control function.
2. Your debtors list includes a large number of customers owing you for invoices older than 3 months and include customers who are, in all honesty, not going to pay you.
3. Your business has only one or two customers and they are not paying you on time.

D) The Bank

1. Your overdraft is always at the limit and this is actually insufficient for the business.
2. Your bank has refused to increase your overdraft and/or has asked for the overdraft to be reduced.
3. Your bank has ‘bounced’ cheques raised by the company.

E) Management of the company

1. You are drawing out more than the business can really afford, and/or have too many staff on the payroll.
2. You are always fire-fighting and can’t get your work done/you are paralysed by inaction.
3. You are not responsible for the present difficulties - the bank, the accountants, your staff or your creditors are the problem

F) Information available

1. You do not know on a weekly basis what the bank account, debtors and creditors figures are.
2. You do not know what your gross profit and your breakeven turnover are.
3. Your accounts are out of date, you do not produce regular management accounts and you cannot accurately assess your likely sales for the next three months.

G) Yourself

1. You no longer enjoy being in the office/at the factory.
2. You don’t take calls from creditors, you avoid meeting your staff and you dread the bank calling
3. You do not sleep at night and are irritable with your family. You are drinking/smoking too much.

Insolvency Evaluator for Companies

Benedict Mackenzie LLP