Is the Bank Appointing an Investigating Accountant?

Have you been informed that your company is facing an investigation by "reporting accountants" or "investigating accountants"? If yes, this will have significant implications for your company.

When a business has financial or operating difficulties it can often breach its borrowing facilities from the bank or from factoring companies. This can lead to bounced cheques, problems with the payments of direct debits or missed loan repayments.  Banks have quite sophisticated systems for monitoring this risk, but often they are "in the dark" with regard to the up to date financial performance of the company that owes it the money. One way of addressing this is for a bank to have the ability to demand detailed and up to date information from your company. The loan agreement you have signed will usually allow for this. So if a bank has concerns over the quality or timeliness of information they have received regarding your company they may appoint an Investigating Accountant.

This step, when taken by the bank, usually means you are already on the path to liquidation, whether you wanted that or not. It is very important for you to retain control of the process.

We strongly recommend that if the Bank has appointed their own adviser, being the Investigating Accountant, then you need to have your own adviser that will look after your interests.  If you are in this situation why not CALL US NOW  for CONFIDENTIAL FREE ADVICE.

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