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Debt Relief – Insolvency – Bankruptcy Information » Insolvency » how can insolvency of a business be prevented?

how can insolvency of a business be prevented?


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2 Responses to "how can insolvency of a business be prevented?"

  1. pinkwell2004 says:
    Insolvency is when companies trade owing more money then they have coming in.

    To avoid this, there should be a compulsory audit every six months where the position of the company is assessed and if the position is not resolved by the next audit, then a decision shdould be taken to close the company down or to get more capital investment to cover the postions between purchase and sales ledgers.

    Hope this answers

  2. ramkrishna8 says:
    by purchasing in credit and selling in cash and making prompt payment to suppliers

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