How do I know if my company is insolvent?

If you’re unsure whether your business is insolvent, there are a few signs to look out for. Insolvency means that your business is unable to pay its debts as they become due, and this can be either a temporary or permanent situation.

Here are some indicators that your business might be insolvent:

1. You’re struggling to pay your business’s or company’s bills on time or have missed payments altogether.
2. You’re constantly juggling debts, using one credit card to pay off another or borrowing money to make ends meet.
3. You have received letters or calls from creditors demanding payment or threatening legal action.
4. You’re facing legal action, such as a county court judgment (CCJ) or a statutory demand.
5. Your company’s assets are worth less than your debts, you fail a balance sheet test, you have little or no savings to fall back on and no possibility of an injection of funds into the company from a third party.
6. Your business is struggling, and you’re unable to pay suppliers, staff, or taxes on time.

If any of these apply to you, it’s important to seek professional advice as soon as possible. As licensed insolvency practitioners, we can assess your situation and advise you on the best course of action to take. Don’t ignore the problem, as it’s likely to get worse if you do, and you may lose control.