Manage cashflow and access finance

Avoid insolvency and bankruptcy

Avoid insolvency

A business is insolvent if it doesn't have enough assets to cover its debts, or it is unable to pay its debts as and when they are due.  Read this guide for information on how to reduce the risk of insolvency and sources of advice to approach. It also describes possible outcomes of insolvency for different types of business.

Insolvency and bankruptcy

If your business becomes insolvent, unless you pay your debts quickly, then the insolvency may lead to bankruptcy or winding up. Bankruptcy applies to individuals such as sole traders and those that have given personal guarantees for loans. Winding up and liquidation apply to companies.  Read this guide for more information and to find out how bankruptcy or winding up can be avoided

Alternatives to bankruptcy

If, despite your best efforts, you find that you are experiencing mounting debt that you are unable to repay, you may consider bankruptcy.  However, you don't have to become bankrupt just because you are in debt.  Use this tool to help you understand what alternatives may be available to you and find out what other options you have when considering bankruptcy

Subjects covered in this guide

• Introduction
• Understand the essentials of cashflow management
• Manage suppliers
• Prevent late payments
• Debt factoring and invoice discounting
• Access sources of funding and finance
• Avoid insolvency and bankruptcy

Print options - What are my print options - Opens in a new window

• Add guide to my print portfolio (print later as PDF)

Email options - What are my email options - Opens in a new window

• Tell a friend about this page
• Send me an email alert when this guide changes