Self Employed workers and IVAs in the field of construction/property

Despite the record level of insolvencies in the UK, the Bank of England again has raised interest rates taking them up to 5.5% which is a six year high. It is expected that at least one more rise will take place this year as the bank attempts to keep a tight control on inflation. These increases are hurting businesses especially in the construction industry as the property market slows and first time buyers in particular feel the squeeze.

Q: Bad debts are rising as Companies and Individuals struggle. How can I protect myself from Insolvency?
A: Cash flow problems are the main source of business failure. Do not overexpand too rapidly and be careful of offering credit terms to new and unknown clients. Ask for a bank or other creditor reference or possibly seek a personal guarantee from Directors of Ltd Companies.

Q: I am finding it harder to sell properties than this time last year. My borrowing costs have increased and the bank is getting nervous. What should I do?
A: Trying to hold out for a price can be very shortsighted. It may be best to reduce the prices as often the carrying costs such as mortgage payments, bank charges or other unhappy creditors will exceed the gain achieved by holding out more. This obviously depends on individual circumstances.

Q: I have tried to reduce costs, prices and staffing levels but do not seem to have enough at the end of each month to pay everyone. What should I do?
A: Seek immediate advice from an Insolvency Practitioner. Most reputable firms offer a free initial consultation where a rescue and recovery plan can be formulated. Do not keep thinking that something is “round the corner” because by the time you turn the corner it might just be too late.

McCambridge Duffy are a firm of leading chartered accountants and one of the largest insolvency practices in the U.K. We specialise in helping self employed individuals. Should your business be experiencing any financial difficulties call free on 0800 043 3328 where one of our highly experienced staff will be available to help you.