28 July 2017: Alan Limb from BRI’s Southampton office explains the benefits of seeking our help at the earliest opportunity.
Frequently we help businesses in financial difficulty whose owners have ignored the warning signs. When we meet them the delay has created a crisis with few options remaining for saving their business.
In one memorable example, a landlord requested an urgent meeting. As I arrived, the Electricity Board had cut off the supply due to non-payment of bills. Furthermore the pub had run out of beer a fortnight previously when the brewery stopped deliveries in view of their overdue debt.
Today, I met two directors who contacted me yesterday. That was prompted by their accountant who hosts the company’s registered office. A Statutory Demand had been served on the company. Everyone concerned recognised the seriousness of this and the need to seek BRI’s input urgently.
The directors explained that the Statutory Demand was from a creditor who was claiming interest on late payments made previously under a contract. The company had made the payments promptly when requested, but that was later than originally agreed. The directors verified that creditor’s calculations were correct.
I suggested that the directors should try and negotiate a settlement that was less than the amount demanded. If that was not possible they should pay in full before the date when the creditor could present a Winding Up Petition against the company (the amount claimed was sufficient for this).
It made a refreshing change to provide help at the earliest possible opportunity. The matter won’t now take up a disproportionate amount of management time or even threaten the Company’s future.
If you have a client who needs assistance with a problem to prevent it getting out of hand, please contact one of the BRI team for help.