‘Our goal is to make it as easy as we can for you to get the help and advice that you need, when you need it.’
When a company is struggling financially, the pressures on a director can be immense and so we realise that the speed at which we can help identify and advise you on your options is paramount.
Insolvency laws can be onerous, and to avoid falling foul of them you must understand your duties fully as a director. All too often directors make the mistake of believing that they are immune from liability for the acts of businesses which are facing insolvency. They must understand that they – as well as their company – may be liable for debts owed to creditors.
At Simply Corporate we provide expert and practical advice to ensure directors can meet all their legal obligations and afford themselves maximum protection.
Personal debt can often go hand in hand with business debt, and Simply Corporate are able to advise you on both.
We understand what a difficult time this can be for a you and are here to help guide you through your available options and solutions, whilst providing both the advice and compassion that may be needed.
Overdrawn Directors’ Loan Account.
The most common situation that creates an overdrawn directors’ loan account is when a director takes a minimum salary to keep national insurance and tax at the lowest levels, with the remainder of the remuneration then taken as dividends.
Whilst the company is generating enough profits to allow this everything works fine, however when the company runs into financial problems and may not be making the same profits as it was before, an overdrawn directors’ loan account may be created as a result.
If a loan account is still outstanding at the point of liquidation, the Liquidator may seek to recover this debt for the benefit of the creditors.
Lenders and Suppliers will often require you to provide personal guarantees when your company borrows money. When times are good this doesn’t appear to be an issue, but if the company starts to struggle or becomes insolvent you may then become liable to repay the full amount from personal funds.
However, with our help it may be possible to negotiate the amount to be repaid or to repay the PG over time.
If a company is insolvent and continues to trade, you may be open to an accusation of potential wrongful trading. If you are found to have breached any of your duties, you can be made personally liable to the company’s creditors.
Therefore, if your business is struggling financially it is key to act and seek our advice as soon as any warning signs have been spotted.
Whilst every director’s situation is unique, Simply Corporate have the experience and expertise to advise directors in all conceivable scenarios, please do not hesitate to contact us today.
GET BUSINESS HELP TODAY
If you are looking for directors advice and require further help, please contact us by phone 01282 222420 or answer the Quick Assessment below and we will either call or email you straight back.