Entering voluntary liquidation might be the best option if your company is no longer viable, you can’t service debts, sell or secure additional finance.
Liquidation is a relatively inexpensive, straightforward process. It involves selecting a liquidator to deal with any outstanding contracts, sharing information with creditors throughout the process, and dismantling your company structure in a controlled manner.
However, speak to your financial advisor about your rights and obligations before entering liquidation. These vary based on your business structure and circumstances.
4. Close down
If your business is losing money, but you don't have outstanding debt to service, it might be time to cut your losses and close up shop before things go further downhill.
Before making the decision to close your business, be mindful of any ongoing financial commitments you might be liable for, such as tenancy agreements. It's also a good idea to speak to your financial advisor about any other options.
If you decide to close, you’ll need to take various steps. These may include creating an exit strategy, notifying your employees, customers and creditors, cancelling contracts or subscriptions, filing relevant paperwork, taking down your website and any directory listings, and so on.
When your business is struggling, these are the four main options to consider. A trusted financial advisor can help you weigh up these options and decide on the best course of action based on your personal circumstances.
Disclaimer: This does not constitute financial advice and individuals should seek information from their financial advisor before making a decision.