Cash Flow Options
Cash Flow Management: Invoice factoring and discounting
Invoice factoring and invoice discounting provide access to the value of invoices yet to be paid. If your credit control processes are efficient and debtors have a good history of paying on time, both methods can quickly release working capital.
Invoice factoring enables your line of credit to increase in direct correlation to sales, with new invoices offering access to more cash. Generally speaking, 80%–90% of the value of unpaid invoices can be accessed. Invoice factoring or invoice discounting may help to provide the injection of cash needed to pay HMRC, and relieve financial pressure in the long term.
Cash Flow Management: Asset financing
Companies owning assets of considerable value may be able to obtain a short-term loan secured on one or more of them. Assets could include company vehicles, equipment, property or inventory. It is a good way to release cash in an emergency, satisfying HMRC’s tax requirements and giving you breathing space to bring your company’s finances under control again.
Cash Flow Management: Company Voluntary Arrangement (CVA)
This is a good option if you have several unsecured creditors pressuring you alongside HMRC. It is a formal agreement to pay debts over a longer period of time, and can include tax arrears. Several payments are condensed into a single monthly repayment, which has the effect of freeing up cash immediately. It can be the catalyst for positive change in companies struggling under the pressure of debt.
Cobra Financial Solutions has a long history of successful debt collection across the whole of the United Kingdom. See our services here.
Cash Flow Management: Company administration
If none of the above options are possible, the best course of action may be to enter Company Administration with a view to turning the business around. If HMRC are about to issue a petition to wind up your business, or you simply see no way out of your current situation and are worried about personal liability, this route into formal insolvency could potentially avert the threat of legal action from HMRC.
Cash Flow Management: Preventing situations getting this far
Before this happens though, why not get in touch with Cobra Financial Solutions to discuss the debt recovery, debt collection or bailiff services we offer? We will be happy to help and we operate across the whole of the United Kingdom. We have a wealth of experience in all of these areas and have helped businesses recover what is rightfully theirs since 2009.
Our team consists of a combined total of 75 x years Debt Collection experience, the past lives of our specially chosen and highly trained team mean they are specialists in dealing with objections and negotiating settlement, our collectors will overcome objections, remove frivolous disputes, seek admission of your Debt & secure payment. Finally, we will have the funds cleared and remitted to you without delay.