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Debt Relief – Insolvency – Bankruptcy Information » Insolvency » Is my business insolvent – This is how you can tell

Is my business insolvent – This is how you can tell

This is one article in a series exploring the myriad of pointers which may indicate that your business is insolvent.The recession is biting as a result of the credit crunch and Insolvency is almost a way of life for some sectors. Check this article and see if you need help with debt.

Insolvency from the view of the bank.

Are you always at the limit on your bank overdraft? Some weeks you may have received some payments in and then straight away you have to make payments back out again that you have been delaying, again taking the overdraft back up to its limit. This is known as bouncing the overdraft ceiling.

Has your bank returned cheques? So not only are you up to your overdraft limit you have exceeded it. Not a good sign.

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Has your bank asked you for increased security? They may want a personal guarantee or security by way of a charge on your house. This is a sign that they are concerned that they may not make full recovery of lending to the business.

Have you asked your bank for a loan or an increase in your overdraft and been refused? This is a sure sign that they think that they are exposed as much as they want to be with your business.

Have they asked you to reduce your overdraft? This is usually a step which follows a refusal of a loan. They will have taken a look at your business and decided that they need to be reducing their exposure in case problems deepen. Again they may ask for that personal security.

Is the bank asking for more management figures, greater detail and more often? This may be a prelude to them asking to send in their own investigating accountants. This happened a lot in the 1990′s when banks were very keen to put in Administrative Receivers where they held floating charges.

The bank and its attitude to you and your business may be a very good indicator as to whether or not the business is insolvent.

If any of these instances ring a bell with you, perhaps you should consider calling for some expert advice.

Information provided by Steve Thatcher of Help With Debt (UK) Limited and total debt solutions company.
For all further reading see http://www.helpwithdebtuk.com
For personal contact email sthatcher@helpwithdebtuk.com
For Steve’s thoughts see http://steves-debt.blogspot.com

If you have any debt problem whatsoever either personal or corporate make Steve your first call all advice is free. Finally if in the UK and you need a friend to speak to call 01162171406

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