With the current issues of Coronavirus/ COVID19 businesses are facing unprecedented issues that no business has seen before, with the whole world coming to a stop, trade, retail, accounting, oil, airlines, trains, restaurants. There is no sector that has not been affect by this, the world’s biggest manufacturer China has stopped.
Now we find the USA, the largest economy in the world in trouble, also oil at an all-time low. The UK government has introduced a number of support measures to help business, sole traders and employees to help the economy and everyone deal with these unprecedented times.
This includes a package of measures to support businesses including:
- A Coronavirus Job Retention Scheme
- Deferring VAT and Self-Assessment payments
- A Self-employment Income Support Scheme
- A Statutory Sick Pay relief package for small and medium sized businesses (SMEs)
- A 12-month business rates holiday for all retail, hospitality, leisure and nursery businesses in England
- Small business grant funding of £10,000 for all business in receipt of small business rate relief or rural rate relief
- Grant funding of £25,000 for retail, hospitality and leisure businesses with property with a rateable value between £15,000 and £51,000
- The Coronavirus Business Interruption Loan Scheme offering loans of up to £5 million for SMEs through the British Business Bank
- A new lending facility from the Bank of England to help support liquidity among larger firms, helping them bridge coronavirus disruption to their cash flows through loans
- The HMRC Time To Pay Scheme.
However if you feel that the above measures that have been put in place are not enough to support your business and you want to look at other options available like Creditors Voluntary Arrangement (CVA) or Creditors Voluntary Liquidation (CVL). If you feel the pressure from creditors is too much or your business has too much debt, then these options could be for you.
They have the following the benefits;
Benefits of Creditors Voluntary Liquidation (CVL)
- Outstanding debts are written off
- Legal action is halted
- Staff can claim redundancy pay
- Leases can be cancelled
- Relatively low costs involved
- Avoid court processes
Benefits of Creditors Voluntary Agreement (CVL)
- Gives the company the ability to continue to trade
- Directors retain control of the business
- Unaffordable debts are written off
- No upfront costs
- Creditor pressure and interest rates frozen
- Company credit rating is affected
- Legal obligation to adhere to the scheme
If you want to have a confidential discussion on what are the best options for you and your business, please contact us on 020 7060 9556 or info@mayfairwealthadvisors.com
