Failing Company Voluntary Arrangement?

Is your company in a Company Voluntary Arrangement? (CVA)? Can you meet the CVA contributions and the ongoing creditors demands? Is cashflow a serious problem??

Cannot meet VAT or PAYE payments after the CVA was approved?

We can help you restructure the CVA, exit the CVA, or sell the assets to quickly save the business.

We have a small group of specialist funders who can quickly refinance the business, this could include funding an early repayment of the CVA creditors, or find a way of  bridging the gap in your CVA cashflow. Or we can arrange a pre-pack of the business to preserve it and the jobs involved.

With over 500 CVA clients over 18 years, we know a thing or two about CVA's and why they fail or work! But we also have funds and funders that can move quickly to rescue almost any viable business.

Get help NOW - if you need advice, finance or a rescue plan for your CVA call Keith Steven now on 020 74166677.

Turnaround Finance

Is your company facing a cash flow crisis? Got a viable company but need to cut costs and find new money to drive the turnaround you have planned?

Worried about HOW to drive the turnaround?

Call the turnaround experts, not only can we help turn the business around but we can source working capital. With nearly 20 years in the turnaround business we know the "tricks of the insolvency trade", the real sources of turnaround money and how to restructure your company.

See our web site www.cheswickcapital.co.uk/money/

Turnaround expert Keith Steven will happily give you a free consultation (confidential of course) and you will take away options, ideas and a plan for action.

Call 020 7416 6677.

Britain’s Companies Need Capital to Grow. But 1 in 3 Applications Fail.

According to a recent survey by Bibby Financial Services, UK businesses are generally unable to secure funding that they need to grow.  

Bibby’s survey of 1,000 SMEs, found that one in three firms have been unable to secure finance in the past 12 months, with just 9% receiving the amount of funding they applied for. Of the firms which applied for funding, only 19% were able to raise what they described as, the necessary level of capital to invest in their business.

With this shortfall in mind, Cheswick can provide working capital, equity and loans from our own sources, turnaround funds and from our network of high net worth individuals to suitable applicants.

If you have a working capital problem, or if you have a “subprime” company, (which simply means that your company is not deemed to be a prime lending risk by the high street lenders) we may have access to financial products that are not available from those banks, even if they would lend!

Some of the more unusual products are listed below, perhaps these could help your company?

Spot factoring of single invoices from £1,000 to £100,000. This can be provided alongside existing facilities or where normal factoring companies cannot lend. Can’t fund a good new order? Even when your customer (the debtor) has a good balance sheet? Try us we may be able to fund this for you. The product can be bespoke to your situation. Normal security requirements such as a debenture may be required.

We can arrange for emergency invoice lending to “take out” bank debt or invoice finance where the relationship has clearly broken down. In as little as 3 days we can remove an existing lender and replace them with fast, high quality factoring / invoice discounting providers. Don’t let banks bully you into administration, control the banks with our flexible and fast moving providers. We can also advise on pre-pack, CVA or other restructuring tools that can be used alongside this product.

Credit/debit card loans. Quite common now, these providers can advance a loan of up to 8% of your future ANNUAL credit/debit card receipts. The loan is paid off over time as receipts come in.

VAT smoothing loans, for smaller companies. If you cannot meet the VAT payment coming up, please talk to us, we can provide small secured loans, which are repayable over 3 months. This can be a lifeline for a short term cashflow problem. We will require security in the form of a debenture. This product is only available to limited companies in the UK and to a maximum of £7,500 for first time clients. Follow on VAT loans are available in the appropriate circumstances.

Turnaround finance

Call 020 7416 6677 and let's see if we can help you, all enquiries are of course, strictly confidential and we can provide confidentiality agreements if required.

Debt Solutions For Professional Practices

Caller today looking for funds for his professional practice. We have introduced him to a potential investor.

But if that does not pan out and with his bank shutting up shop, we can advise on a business asset sale, informal time to pay deal with HMRC, or a company voluntary arrangement (CVA) through our sister firm KSA Group. There are many ways to fix a cashflow problem. Especially if you do not have experience of HMRC winding up threats.

Looking for solutions and pragmatic advice? Please do call 020 7416 6677 today.

We can fix your HMRC, VAT, PAYE or cashflow problems.

Use our nifty Appointron App to schedule a free appointment

Want a free appointment to speak with an expert turnaround finance provider and expert insolvency advisor??! No fee, a few clicks of your mouse and you too can arrange a free no obligation chat!

Click the  easy to use Appointron app to the left of your screen.

New Saturday morning slots available - private and high quality advice free, must be booked by 3pm on preceding Friday please.

We look forward to helping you with your working capital, cashflow or solvency problems.

Case Study Business Asset Sale Solves Contractors CVA Problems

Case Study Business Asset Sale for client in a CVA 2012:

Cheswick arranged the business asset sale for a company that had entered company voluntary arrangement (CVA) in 2010. This electrical contractor could not maintain or build sales as it was failing more and more of the tendering processes it went through.

CVA is a hugely powerful restructuring tool.  However, most credit rating agencies, incorrectly in our view, regard this as an ongoing insolvency mechanism and remove all credit ratings because of the CVA.

Most of our clients’ large contracts came from large companies and they all require a full tendering process. Because the company was in a CVA and had no credit rating, it found it was losing more and more work.

Problem?

How could the directors act properly, maximise creditors interests and keep the business from collapse? With previous sales of £4m, but now sharply less, the company was set to run out of working capital.

Our solution?

A business asset sale strategy was proposed, in this method the assets are valued externally by a qualified surveyor or business valuation agent. Then the assets are sold through a formal legal process. The “business” is sold to a third party whilst the old “company” remains.

The independent valuation element is crucial to avoid section 238 Insolvency Act 1986, transactions at an undervalue risks.  Your view of the asset value and the author’s may differ but a RICS qualified surveyors report settles the argument and protects directors from liquidators taking action to recover value lost in the sale.

Having had the valuation done, the business, work in progress, goodwill and vans were valued at a little under £20,000. Cheswick instructed the valuers, wrote and negotiated the contract for sale, board resolutions / minutes and made sure that the directors were guided through this difficult process.

“Newco” was a company that had been previously formed and was also owned by the directors and whilst they had to be careful about conflict of interest the overall result is this: oldco supervisors will pay 8p in £1 after the 2nd year of the CVA, to CVA creditors, having paid 3p in £1 in year 1. The liquidation will see a modest dividend to post CVA creditors, (once debtors collected) which are very modest because of lack of credit.  There was no bank borrowing given the banks reticence to fund companies in CVA. Thus creditors interests are maximised by the process, as a better result is obtained overall than in winding up.

No jobs were lost as all transferred to the new company. This maximised the creditors (employees) interests too.

Total time to affect the deal from initial discussion one month.  Total cost including valuation fees?  Please call to ask!

So, if your company is in a CVA and is struggling for credit and cannot tender for new work, call Cheswick now and get advice, there is no fee for initial advice of initial meetings. This will be followed up by a solutions report setting out the options and the (fixed) costs involved.

Please call now 020 7416 6677