Haslers offers support to businesses facing the prospect of Coronavirus insolvency

Haslers offers support to businesses facing the prospect of Coronavirus insolvency

Loughton insolvency specialists Haslers Chartered Accountants is calling on struggling local businesses to get in contact with its experts if they face the prospect of going under.

The firm says that thousands of businesses face failure in the coming months and points to the latest poll from the British Chambers of Commerce, which has found that six out of every 10 firms in the UK will run out of cash in the next three months.

Although the Government has taken considerable steps to support businesses in the UK through its emergency measures, such as the Coronavirus Job Retention Scheme and Business Interruptions Loans, the firm believes that it is sadly inevitable that many firms will collapse in the coming months.

Nick Nicholson, a Licensed Insolvency Practitioner and Head of Restructuring and Recovery at the firm, said: “The Government has taken unprecedented steps already to support businesses, going above and beyond to offer funding to companies in distress.

“Unfortunately, much of this critical funding will arrive too late for many, while other measures, such as the Coronavirus Business Interruption Loan Scheme are not as accessible as some had hoped.

“Businesses that were already struggling prior to the pandemic, that already had poor cash flow and small reserves are likely to not survive the coming weeks and so it is likely that they will need to undergo insolvency procedures.”

However, Nick pointed out that there was a glimmer of hope for some, if they seek the right advice early.

“The Government has already relaxed some of the insolvency laws to give businesses breathing space from creditors and to allow them to continue trading, when they would typically not be able to,” he explained.

“The Government has clearly identified that the failure of just one business is going to have a significant impact on all businesses within a supply chain and so it has acted swiftly to offer support.”

Nick said it was critical that businesses seek professional advice on business recovery now if they faced the prospect of failure to see what options are available to them.

To find out more about Haslers specialist insolvency services, please contact us.