How to close a business and when it is the most suitable option
Many businesses trading in the UK at present may find themselves in an insolvent position, or suffer from short term cash-flow difficulties. If your business does not have the ability to continue trading, it is important to take prompt action and learn more about out how to close your business.
It may be the most suitable option to seek advice on how to close a business if the business has debts it cannot afford to repay and there is no longer a viable company to be saved.
The process of how to close a business is officially called Creditors Voluntary Liquidation (CVL). CVL is also known as ‘insolvent liquidation’ and is the form of liquidation that is most commonly used in the UK.
To start the CVL process, the business directors appoint an Insolvency Practitioner who will liquidate all the assets, and then distribute funds back to the creditors. All outstanding business debts after the repayment are written off and the business is dissolved at Companies House. This doesn’t include debts personally guaranteed but our business debt advisors can provide specialist advice on this too.
Directors could also be entitled to a redundancy claim of up to £15,750 from the Redundancy Payments Office after they close a business. If you are unsure how to close your business, then we would urge you to seek advice from our business debt experts. To find the best solution for you, try our quick questionnaire.
All business debt solutions should be carefully considered.
For advice on how to close a business, call our experienced team for business debt advice now on 0333 9999 636.