Aug 29
adminUncategorized Business, Business Owners, Cash Flow Problem, Climate, COMPANY, Company Insolvency, Current Account, Debts, Economic Times, Economy, England And Wales, First Quarter, Five, Flow 2, Foreseeable Future, Insolvency, Insolvency Service, Liquidation, Overdraft, Realistic Deadlines, Senior Managers, Signs, Urgent Action, Warning, Warning Signs, Year Given That
The first quarter of 2009 saw difficult trading conditions for many businesses across the UK. The official Insolvency Service figures showed that in the first quarter of 2009, the number of companies being put into liquidation in England and Wales increased by over 50% compared to the same quarter in 2008. Many analysts are predicting that the economy is not likely to improve until the end of the year.
Given that the pressure on business seems likely to continue for the foreseeable future, it is vital that directors and business owners make sure that they are vigilant about the trading status of their companies. One of the duties of directors is to ensure that the company that they are running does not trade if it is insolvent. If directors allow their company to trade while knowing that it is insolvent, they may be held liable for the business’s debts which are generated from that time onward.
If you are busy with the day to day running of a business, it is all too easy to overlook the signs which would indicate that the company is at risk of trading while insolvent.
However, this situation can be avoided if you ensure that you have good and regular information about specific areas of your business. I would suggest that during these difficult economic times, directors and senior managers take special notice in the following areas:
1. Make sure that you receive regular reports regarding the status of the company’s current account. If the account is permanently at the limit of the overdraft then urgent action needs to be taken to improve cash flow.
2. Is the business holding on for one more sale, contract or big customer to solve the cash flow problem? In the current climate, you must realistically forecast the possibility that this event will not happen.
Give yourself realistic deadlines after which alternative action must be taken.
3. Have your accounts and annual returns been posted late? If so, you need to understand why this is and take appropriate action. It may be a simple mistake. However, in times of financial difficulty, the accounts department will often be distracted by other pressures and overlook accounts filing deadlines.
4. Often when a business is getting into financial difficulty, VAT and PAYE/NIC payments are regularly made late as available cash is being used to pay suppliers to keep the business running. This situation can not be allowed to continue. HMRC will apply for a business to be wound up if crown debts are continually left unpaid.
5. Are you unable to secure new credit or extend existing lines of credit for the business? This situation has become more and more common with the onset of the credit crunch and banks reluctance to lend and expose themselves to further risk. If you find yourself in this situation, you may have to consider other options such as cost cutting.
If any of the situations highlighted above are identified, it does not necessarily mean that your business is heading for failure. Once the underlying reasons for the problems are investigated and understood, it may be possible to resolve them quickly through a change in business processes. If this is not possible and the situation is more serious, then it is important to act quickly.
If you have been putting off difficult business decisions such as a redundancy programme to reduce cost, then a realistic view must be taken as to when this should be implemented. However, before making radical change to your business, my suggestion would be to first take advice from a business advisor with specialist insolvency knowledge. There may be different ways of looking at and resolving the problem which you had not thought about or were not aware of which may better safeguard your business for the long term.
Mar 22
adminDubai Visa Backing, Bonds, Business Creditors, Business Professionals, Chief Executive, Chris O Donnell, Company Spokeswoman, Conglomerate, Credibility, Creditors, Debt Problems, Debts, Dozens, Dubai, Entire Company, Estate, Financial Pressures, Gets, Giant, High Net Worth Individuals, Home Countries, Million Dollars, Nakheel, Negotiations, real, Restructuring, Taxation
Nakheel, a division of indebted state-owned conglomerate Dubai World, has been trying for meeting to convince its creditors to accept new terms of payment in at least 10 thousand 500 million debt. Nakheel hoped to complete the process by the end of the year, but now it seems very unlikely to get it.
The company is negotiating with financial creditors such as banks, creditors and dozens of businesses, including contractors and suppliers who are still awaiting payments due in a while.
The goal is to get the support of at least 95% of its business creditors by the end of the year so that way you can proceed with the restructuring. Nakheel has offered business creditors full payment of its debts, but not all cash. The developer is offering 40% cash and the rest in bonds.
In September, the chief executive of Nakheel, Chris O’Donnell, told The Associated Press that he hoped to complete the restructuring of the entire company’s debt by the end of the year.
On Wednesday, a company spokeswoman could not say how much progress had been made in negotiations with the financial creditors.
Solving the debt problems of Nakheel, it would be a considerable progress in efforts to alleviate financial pressures suffered in Dubai. In October, Dubai World managed to secure the full support of creditors for its debt of 24 thousand 900 million dollars, but the real estate division has been more problematic, given the crisis in the sector that has seen them drop to half the prices of home in Dubai.
There is a real opportunity to encourage high-net-worth individuals from the West to live in Dubai with its popular lifestyle and to escape punitive high taxation in their home countries to finance the massive quantitative easing programs over the coming decades.
However, to restore confidence and attract this demographic pool of wealthy buyers, it is necessary to keep pushing hard for credibility across the entire industry offering business professionals to buy Dubai property.
This means regulating real estate practitioners in addition to implementing meaningful and practical real estate legislation, including a foreign residence visa type permit for buyers, which of course must respect UAE government strategies going forward. The main criteria for most foreign buyers is to be recognized as ‘non resident for tax purposes’ by their country of origin and the regulations to achieve this status is clearly set out in each jurisdiction.
Despite claims from the government that there are mounting signs that to buy Dubai property market is stabilizing across many parts of the emirate, various estate agents project that prices could continue to plummet for another two years. Landmark Advisory estimates that property prices across some parts of the emirate could fall by up to 20 per cent by the end of next year, due to a glut of homes on the market.
Those who are planning to buy Dubai property must keep in mind that property market is still suffering from the adverse impact caused by the global credit crisis and a general oversupply of residential properties. Despite a fall in new supply of home in Dubai, there are still too many rent apartments Dubai coming onto the market with further properties planned.
May 23
adminArticles Buying Stocks, Car Insurance, Cheap Money, Credit Cards, Credit Rating Agencies, Credit Score, Credit Scores, Debts, Family Budget, Finding The Money, Friends And Neighbors, Insurance Companies, Insurance Premium, Landlords, Midst, Recession, Responsible Person, Risky Investments, Sacrifices, Short Time
When you look around your neighborhoods, it’s hard to find any good news. Friends and neighbors may have lost their jobs or be on short-time. There are foreclosed properties on every street. Shops and businesses have been closing down with increasing frequency. These are the signs of a real recession where unemployment and poverty stalk the land. The cause of all this pain is not hard to find. We have all been living beyond our means. When the banks and credit card companies offered us more money to borrow, we just took it. Why bother to save when the value of our homes only goes up? Let’s plan for our retirement by borrowing cheap money and buying stocks and other more risky investments. No-one ever loses if they follow the advice of the credit rating agencies. Well, we know better now. What goes up can also come down. What is given a triple A rating can be junk tomorrow.
In the midst of all this chaos, the credit card operators have been cutting back on the borrowing limits. This has forced pain on us for two reasons. Firstly, finding the money to pay down our debts more quickly means redesigning the family budget. Sacrifices have to be made. Secondly, the way the credit score is calculated depends in part on the extent to which we use the credit cards we have. If the limits are reduced, we look like bad risks because the amount borrowed is closer to the limit. We have less money available to borrow and cut down on card usage so we can repay faster. Put the two together and the score falls. This is a direct criticism of the methods used to calculate the scores. It produces a fundamentally unfair result during a recession.
This would not be a problem if the credit score was only used by banks and credit card operators. But it’s also used by companies to help decide whether to employ you, by landlords deciding whether to rent to you and by insurance companies deciding whether you are a responsible person. National figures show more than half all insurance companies use credit scores as a key factor in deciding your premium rate. This is extraordinary. There is only one possible effect of being in debt when it comes to the way in which you drive. If you cannot afford to repair your vehicle, you drive defensively to reduce the risk of an accident.
Some states like California and Massachusetts have banned the use of credit score for this purpose, but they are a minority. They cite discrimination as a reason for the ban. The majority of the population without access to banking services and credit cards fall into minority racial groups. When they do not have a credit score, they are forced to pay a higher premium simply because of who they are, not how they drive. So, when you are looking for affordable cover, get the maximum possible number of car insurance quotes to find the best policies. If you live in a state which refuses the regulation of the car insurance market, contact your local government representatives and tell them how much pain you are suffering because of this unfair use of credit scores.
May 22
adminBusiness Loan 18 Years, Borrowers, Business Record, Collateral, Debts, Financial Help, Hassles, High Interest Rate, Lenders, Loan Demand, New Business, New Machinery, Rate Of Interest, Repayment Ability, Running A Business, Time Period, Uk Citizen, Unsecured Business Loans, Unsecured Loans, Ups
If you are running a business then there are ups and down. There are times when your business does not go smooth and you may need some extra financial help but the main problem is that loan demand some security. Lenders do not want to give the money without any money security. And if you are searching any solution then you need unsecured business loans. As the name suggests these loans do not demand any security, you can easily avail the money without risking anything from your side.
These loans are especially helpful for if you are going to setup new business as there is no need to keep any thing as collateral. The money which you can avail through these loans will be around £1000 to £25000 depending upon your repayment ability. The money you need to repay within the time period of upto 10 years. But for getting the money you have to assure your lender that you can pay the money on time. For this lenders do check your business record like your tax record and all.
Being a UK citizen and also your age should be more then 18 years is the requirement criteria for these loans. You may need money for any purpose like buying some new machinery, clearing your old debts, paying some clients, or want to setup whole new unit. These loans are better opportunity as there is no risk for the borrowers. They can use the money the way they want.
You just need to worry about your rate of interest. Lenders do charge high interest rate. However by comparing all the lenders who are available online with this plan you can get the affordable interest rate. Online way of form filling is easy and also hassles free. Just fill out the online form within few minutes and money will be in your account. You don’t need to go out side for getting the unsecured business loans.
Mar 23
adminInfo Advertise Online, Consumers, Creditors, Debt Consolidation Companies, Debt Consolidation Loans, Debt Consolidation Service, Debt Consolidation Services, Debt Loans, Debt Management Service, Debt Management Services, Debt Relief, Debts, Eliminating Debt, Home Equity Loan, Institutions, Main Goal, Personal Debt Consolidation, Personal Loans, Realistic Solution, Tariffs
Everybody may think the same that too much debt is a common problem that affects millions of consumers around the country. Eliminating debt is not an easy task. However, there are many strategies in place to help consumers reduce unnecessary debts and save money. If you have good credit or a home, there are practical ways to reduce debt. Unfortunately, those with lower scores have fewer options, indeed.
Actually there is an easy way to eliminate debt. If you are not eligible for personal debt consolidation loans and home equity loan is not feasible, consider using a debt management service to help with your debt.
In the last five years, you can find that the management and debt consolidation companies have become widespread. These agencies advertise their services and with online advertising. The main goal is to help people manage debt, and outline a realistic solution for debt relief.
You should also know that types of debt management services. There are two main types of debt management services. Before choosing an agent, you should research the alternatives and select the one best for you.
If you have too much debt acquired, a debt consolidation service can be a solution. The main reason why many consumers are not able to reduce the debt is due to the high financial cost and final cost. Debt consolidation institutions recognize the problem, and will work with your creditors to tariffs and reduced or eliminated fees.
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