13th December 2024
Struggling with BBL repayments? Running a small business in today’s climate is tough, and for many, Bounce Back Loan (BBL) repayments are adding extra pressure. In our latest forum-style discussion, we dive into real struggles […]
26th September 2024
In today’s fast-paced business environment, even the most robust enterprises can encounter financial difficulties. Whether due to economic downturns, unexpected disruptions, or internal mismanagement, financial distress can be a daunting reality for many companies. However, […]
12th September 2024
Insights from Tom Fox, Head of Insolvency and Licensed Insolvency Practitioner at Umbrella.UK Insolvency “Running a business comes with plenty of highs and lows. But when the lows hit harder than expected, and insolvency becomes […]
24th May 2024
As a small business owner, handling small business debt recovery demands from creditors can be overwhelming. This guide offers practical steps to navigate these challenges to protect your business. Understanding Small Business Debt Recovery Demands […]
16th November 2023
In the current economic landscape, a concerning trend is unfolding as the number of businesses facing insolvency rises, potentially steadily reaching levels not seen since the financial crisis of 2009. Over the last three months […]
16th March 2023
This Wednesday, the Chancellor announced an extension of the UK’s Energy Price Guarantee for households until June. However, small businesses seem to have been left out of the deal. Originally set to expire in April, […]
16th November 2022
Many insolvent businesses are guilty of sleepwalking from financial strength to financial distress, particularly when times are tough. There are almost always signs of trouble during a crisis, but business owners can’t recognise them, or […]
5th September 2022
Conservative leadership frontrunner Liz Truss is reportedly weighing up a business rate cut to help small firms struggling with inflation. The measure is thought to be one of a number of options under consideration to […]
4th February 2022
When a company is insolvent company directors must prioritise the interests of the company's creditors. If the company continues operating as normal this is known as trading while insolvent.
Trading while insolvent is unlawful and can have serious personal consequences for directors.
If you're a director and you knowingly trade while insolvent, you can be held personally responsible for company liabilities and you can be disqualified from holding other directorships.
How do I know if my company is insolvent?
According to the Insolvency Act 1986, a company is insolvent if it can't meet its day-to-day obligations.
This includes:
16th March 2021
More than four in ten (45%) small and medium-sized businesses applied for external financial support last year, according to research from the British Business Bank (BBB). Gross bank lending (excluding overdrafts) to smaller businesses rose […]