If your company is possibly insolvent, one of the key players you need to consider is the bank. The bank will usually have more power than an ordinary unsecured creditor because it will probably have a charge or mortgage over the business assets and commonly it will have your personal guarantee and a charge over your home.
Banks have a common approach to customers in difficulty. As a director, you won’t be familiar with the likely reaction of your Bank. For a start, if a Bank suspects a customer is insolvent, it is common to change the account manager to a manager from the “Credit” area. That manager’s focus is on ensuring the bank recovers its loan in full rather than on “keeping the customer happy”.
The bank will be aware of the signs detailed in our Warning Signs page but they will also have a variety of other warning signs that may arise within the bank as a result of their monitoring systems. The main warning signs a bank will see are the following:
It is always better for a director to control the restructuring process rather than be dictated to by the bank or the bank’s adviser. If you’ve noticed the above warning signs we strongly suggest you contact us.
If the above advice has not answered your questions you might want to review the following pages and downloadable Information Sheets:
Or please call us for free advice.
“I’ve now referred two liquidations to Dissolve and in both cases my clients were amazed at the ease of the appointment process and how quickly the liquidation was finished.”…
Partner of a Sydney Accounting Firm
“Cliff and his staff provided a fast, efficient and friendly service. The process was simplified and all steps were communicated well. The price was exactly as advertised with.”…
Director of a Property Development Company
“…after I gave Dissolve the go-ahead I received the No Asset Liquidation Package within two hours and I had the company in liquidation the next morning.”…
Director of a Fashion Retailer