Posts Tagged ‘rotherham

23
Jun
15

Is your business experiencing financial difficulty?

Do you need to know what options are available to your business in troubling times? Companies in financial difficulty - Hart Shaw Business Recovery

Watch our service insight to gain more understanding of the options that can be available and how you can start taking the right steps to safeguard the long term future of your business.

The team at Hart Shaw Business Recovery & Insolvency have helped to turn around and keep trading over 60% of the troubled businesses that have sought help and advice from us.

Watch our ‘Companies in financial difficulty’ video here.

 

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03
Mar
15

No business is immune from failure

The recent insolvency of the Rotherham based MTL Group is a timely reminder that no company, however large and high profile, is immune from failure. Administrators were appointed to MTL Group on 2 February 2015 with the immediate loss of 157 jobs and leaving creditors owed circa £10m.

The immediate effect of any insolvency is that creditors suddenly have a bad debt to deal with, and the larger the debt, the more likely that there will be a domino effect, causing otherwise solvent companies to have cash flow problems which could ultimately lead to failure. When the initial insolvency involves such a high profile company as MTL Group the risk of the domino effect only increases.

We are currently helping one of the creditors of MTL who has a large bad debt. Fortunately this company is financially sound but even so, the disruption to its immediate cash flow caused by MTL is such that we are currently negotiating with HM Revenue & Customs a time to pay arrangement for the current VAT Quarter. This will enable the Company to avoid penalties and make nominal payments until, over the next six months, it can claim VAT Bad Debt relief on the MTL debt and so satisfy the current VAT quarter.

Other Companies in less financial health may need to negotiate with their creditors generally and this is where an Insolvency Practitioner can provide valuable help. Of course this is dealing with the effects of a bad debt after it has happened. But what practical things can a Company do to lessen the effects of a bad debt before it happens?

The first thing is to know your customer, assess their credit worthiness and set a credit limit which reflects the commercial risk you are prepared to take, because were your customer to fail that is how much you stand to lose.  Once set, stick to it. We often see cases where although a credit limit was in place, the company has ignored it and gone on supplying the customer which has ultimately failed. If possible incorporate a personal guarantee into your credit application form, it may not always be possible, especially with larger customers, but it is worth trying. Finally consider credit insurance to protect against non-payment should a customer fail. The benefits of credit insurance are not only that the debt being insured would be paid, but that you will have access to improved credit intelligence on your customers.

If your require any assistance in dealing with your creditors or require further information about credit insurance please contact Christopher Brown, Business Recovery & Insolvency Partner at Hart Shaw on T: 0114 251 8850 or email: chris.brown@hartshaw.co.uk.

Christopher Brown of Hart Shaw

Christopher Brown, Business Recovery & Insolvency Partner at Hart Shaw

 

 

 

 

 

 

 

 

 

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Attend Hart Shaw’s forthcoming events

16
Sep
13

SHEFFIELD CITY REGION BREAKFAST CLUB – WEDNESDAY 9TH OCTOBER 2013

A new networking group for local businesses

Hart Shaw Chartered Accountants and Reynolds Trade Credit are setting up a new breakfast club aimed at bringing together decision makers from local businesses in the Sheffield City Region.

Hart Shaw BRI Reynolds Trade Credit

 

 

 

 

The format of the events will be open networking followed by a short discussion on relevant business issues.

The first event is taking place at the Aston Hotel on the Sheffield / Rotherham border on Wednesday 9th October between 8:00am and 9:15am, and will focus on Retention of Title clauses.

Future topics can be decided by the group’s members and opportunities to sponsor and have presentation slots will be made available.

The aim of the group is for like-minded decision makers to share their experiences and discuss solutions to everyday business issues.

Full details are:

  • Date:      Wednesday 9th October 2013
  • Time:      8:00am for breakfast sandwiches and open networking, followed by a brief presentation until 9:15am
  • Venue:   Aston Hotel, Britannia Way, Rotherham, S60 5BD

The breakfast club is FREE to attend and you are very welcome to bring a guest or a colleague.

To confirm your attendance please contact Brendan Hall at Hart Shaw on T: 0114 251 8872 or email: brendan.hall@hartshaw.co.uk.

Places are limited so please book early to avoid disappointment.

We look forward to seeing you there.

Hart Shaw events

Reynolds Trade Credit