A CVA may be right for your business if you currently insolvent but also profitable. Its main purpose is to give you find to manage your finances so that you can repay the debts you owe your creditors, including the HMRC.
The process behind a CVA can be summarised in three main steps:
Once you are at least 75% of your creditors agree to a repayment strategy, you benefit from the advantages of the CVA:
It all sounds well and good being able to free interest and stop creditors taking legal action against you, however, a CVA is not a confidential affair. A notice of approval will have to be filed at Companies House which makes the basic details of the CVA available for the general public to view. This can have the knock on effect of creating problems in the future by finding it more difficult to borrow or sell as creditors and clients find it worrying you went through the CVA procedure.
For more information on how a CVA can benefit you and why or why not you should undertake one, our experts are on hand. Call us today on 0800 157 7355 to find out whether your company is right for a CVA or whether there is a better solution in store. We can help recover your business but need help from you in order to achieve a result.
Mark Jefferson is a seasoned commercial finance professional with over 25 years’ experience in financial services, much of that spent providing funding to SMEs. Mark has worked with many other firms in a similar situation to yours. Call Mark on 0800 157 7355 and you can also follow him on Google+
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