As we move into another phase on the “road to recovery”, there are positive indications with regard to the UK economy and the prospects for a return to some form of normal.
However, as the various government funded assistance measures are phased out or ended, business owners, landlords, local government or others affected may still have difficult choices to make. A few examples:-

• The restrictions on recovery action for outstanding debts will have brought significant benefits to those businesses struggling to pay their bills. However, for every debtor given protection, there is a creditor who has to wait for payment, with consequential impact on their cashflow

• Whilst tenants, (both commercial and private), have been able to defer payment of rents, those rents are still outstanding, and landlords (again commercial and private), have been deprived of the cash needed to service their own borrowings and maintain their buildings and cover fixed costs.

• Much has been said about the business rate holiday and the need for reform. Again, although the respite is welcome for some, the cost to local and central government has been, and continues to be, colossal. Whilst interest rates are low and government borrowing costs may be affordable now, as some point the UK deficit will need to be addressed, with what effect to personal incomes and public services in the future?

As we move into the “new normal”, directors and business owners will need to take stock as to the financial health and viability of their company, particularly as much debt has been deferred and repayment must be considered As licensed insolvency practitioners with many years’ experience, T H Financial Recovery is able to offer professional, well informed and sympathetic advice. Many directors have never considered the prospect of insolvency, but the Covid 19 pandemic has had an effect almost unknown in living memory. Indeed, the processes involved in recovery, (Administration, Voluntary Arrangement, Liquidation, Receivers etc), have been heard so often that some consider the terms to be almost interchangeable! This is not the case and so a basic understanding of the procedures and the potential consequences of making a decision is essential before any action is taken.

Early consideration allows time for an informed thought process and investigation, this certainly reducing stress and understandable anxiety.

If you are feeling uncertain about the future, a confidential, no obligation chat with one of our advisors will almost certainly be of benefit. Please do not hesitate to call T H Financial Recovery on 01282 332222 or email and someone will come back to you at a convenient time.