AABRS: Ways to Solve a Financial Difficulty

financial-problemsA financial dilemma is like having one foot six feet under. Businesses have monetary resources as their lifeblood and without it, one is sure to go into further problems if not a full on liquidation throttle. You have to stop it from its tracks, revert the scenario and get yourself back on track otherwise you have to ready yourself for a future shutdown. So what are the ways to solve financial difficulty? AABRS experts have the following advice for us.

  • Assess your performance. How well is the business doing? You have to make a careful examination and check the viability of operations. Find out what causes the problem so you can better target a solution for it. You cannot simply tape up a leak in the system. You need to replace, fix and upgrade it otherwise it’ll simply come resurfacing again and again.
  • Be proactive. Don’t wait out and put the matter off thinking that it will fix itself overtime. You need to act in the now, not later but today. Problems like this consider time not to be golden but of diamond value. Plus, procrastinating will only escalate the issue and make it worse.
  • Businesses without a budget or who have one but don’t use it walk blind. A financial plan is crucial in the effective and efficient use of one’s resources. It likewise ensures that all needs are provided for accordingly and are ranked by level of priority. A budget serves as a map and without one you are lost. Especially in a financial dilemma, its use is crucial. You may also want to revisit each and every item to ensure that your budget is indeed as best as it could be.
  • As much as possible, only spend cash. You need to avoid as much debt as you can thus assessing each and every purchase must be needed to ascertain whether or not credit is indeed needed or even reasonable. If cash does not tantamount to the necessary need and credit must be taken, be sure that the purchase is able to generate enough returns to pay itself over time otherwise defer the transaction.
  • Develop strategies and contingency scenarios. Part of solving a problem is preventing it. This is done through proper planning and the creation of contingency maps to address threats and risks. AABRS experts say that many businesses suffer lesser if not at all with the help of such precautionary measures. Visit their website http://www.aabrs.com.

The Road to a Winding Up Petition Procedure

winding-up-petitionA Winding Up Petition (WUP) is perhaps the scariest thing that could happen to any company and we would not dare ask why. After all, the process ends up by forcefully putting an entity into liquidation whether it wants to or not as a result of a court petition brought up by unpaid creditors who have exhausted all of their means to collection. So how does the winding up petition procedure roll out? Below is the five step process.

Step No. 1 – Creditors’ Appeal

Creditors to whom the company owes a certain amount will first attempt to recover and collect from the latter by releasing a claim. Noncompliance after twenty days can entitle the former to seek assistance to harness a winding up petition. Oftentimes, this is the last resort attempted at given the expenses that it can cost creditors. This is also the reason why those that attempt it are those whose recoverable amount will be greater than their expenses. Once the petition is submitted, the court will then review it and if accepted, such will be forwarded to the debtor company deemed insovlent.

Step No. 2 – 7 Days to Act

The company is only given a maximum of seven days to act. This means that there is only a week tops to either pay the debt in full, pursue an agreement, engage in a dispute if the debts are doubtful or take on a Creditors Voluntary Liquidation or an Administration should the court and the creditors allow so.

Step No. 3 – The Petition Ad

After seven days from the issuance of the petition, the creditors will then be published a petition advertisement in the London Gazette as a means of making the WUP a public matter.

Step No. 4 – Freezing of Accounts

After the advertisement, bank accounts and all assets pertaining to the insolvent debtor company will then be frozen. Disbursements, sale and transfers of any form will be disallowed to avoid illegal distribution and protect creditor rights.

Step No. 5 – WUP Granting

With the granting of the winding up order by the court, a liquidator will then be appointed to liquidate the insolvent company. The latter will lose all of its powers and control over the company and there is nothing more that they can do to stop the winding up petition procedure. This is essentially the end and cessation of the business for them. The proceeds from all asset sales shall be distributed to creditors.

Aabrs.com to find out more on winding up petition.