Скачать или смотреть How to check if your limited company is insolvent

We answer how to check if your limited company is insolvent using the balance sheet and cash flow test for insolvency and what to do next if your business is insolvent, including your duties as a company director.

The first step is to determine if your business is experiencing short-term financial problems or if it is insolvent. You can check if your ltd company is insolvent by following the next two steps.

Cash flow test for insolvency – Can you pay your bills as and when they fall due? Cash flow is used to pay essential company liabilities, such as rent and utility bills

Balance sheet test for insolvency – Do company liabilities outweigh company assets? Your balance sheet tracks liabilities (debts, loans, and additional borrowing), against the value of company assets, both tangible (property, equipment, and machinery) and intangible (intellectual property and goodwill)

If you owe more to creditors than you can afford to pay - your business may be contingently insolvent.

If your business is insolvent, you must stop trading to protect creditor interests, or you could be held personally liable for the business debts or even face director disqualification. Speak to a licensed insolvency practitioner as a matter of urgency.

For more business insolvency advice and to use our free 60 second liquidation test to understand your options, visit the UK Liquidators website, we’re happy to help -
https://www.ukliquidators.org.uk/60-s...