Business Rescue
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Business rescue is a process in which a company that is facing financial difficulties or insolvency can be saved and restored to a viable state. This process involves restructuring the company's finances and operations to improve its viability and sustainability, and to avoid liquidation or bankruptcy.
The goal is to allow the company to continue operating and to repay its creditors over time.
Types of Business Rescue
Types of Business Rescue
Business rescue options are typically aimed at helping businesses that are in financial distress to recover and become financially stable. The following are some of the common business rescue options in the UK:
Company Voluntary Arrangement (CVA): This is a legally binding agreement between a company and its creditors, which allows the company to pay its debts over an extended period of time. The company continues to trade while it repays its debts.
Administration: This is a process in which an administrator is appointed to take control of a company and manage its affairs, with the aim of rescuing the business or finding a buyer for it. The administrator is appointed by the court and has the power to sell the company's assets, restructure its debts, and make other changes to try to save the business.
Debt reorganisation: This involves negotiating with creditors to agree on a plan for repaying debts over a longer period of time, which may involve reducing the amount of debt owed or changing the terms of the loan.
Mergers and Acquisitions: In some cases, a business rescue option may involve finding a buyer for the company or merging with another business. This can help to improve the financial stability of the company and provide a source of funding to support its recovery.
Investment Options: It may be possible to seek investment from a Venture Capitalist or other potential shareholder to give a cash boost to your business. You may need to sell some equity and shares in your business to obtain investment.