Restructuring and insolvency trade body R3 has launched a free guide for company directors that explains how to spot signs of financial distress, the options open to them for resolving it, and where to find sources of regulated advice.
The Get Back to Business guide provides a one-stop guide to the main options that are available to resolve corporate financial distress, and explains how the insolvency and restructuring framework and profession can help to rescue viable businesses, save jobs and repay creditors what they’re owed.
According to the latest official monthly figures, the number of corporate insolvencies across the UK increased by around nine per cent between April and May, and was almost seven per cent up on the figure for May 2020, despite the continuing government restrictions on a number of key debt enforcement actions.
R3 North East chair Alexandra Withers says: “At a time when many regional firms are still reeling from the economic impact of the pandemic, it’s important that their directors know about the range of options available to help secure their future.
“This guide has been developed to give directors a single authoritative resource that sets out the full range of options for addressing financial issues, where to find regulated financial advice and the importance of meeting their responsibilities as company directors.”
Recent R3 research showed the insolvency and restructuring profession rescued a total of 7,200 UK businesses and saved around 297,000 jobs in 2019, while nearly four out of ten (39%) businesses advised by R3 members remained open after their insolvency procedure concluded.
Alexandra Withers, who is an associate solicitor in the insolvency department of Short Richardson & Forth Solicitors in Newcastle, continues: “Rescue is always the profession’s priority wherever this is possible, and this research showed how insolvency practitioners helped thousands of UK businesses survive in a far less turbulent economic climate than this one.
“The prospects for business rescue are always better the earlier issues are identified, and we would always encourage North East company directors who are concerned that their business could be struggling to seek qualified advice as soon as possible.
“It can be difficult to talk about your business worries, but the sooner you have the conversation, the sooner you can begin to explore the options for improving your situation and future prospects.”
The free Get Back to Business guide is available to download via the R3 website.