Avoid insolvency – Don’t let your money go up in smoke.

James Salmon, Operations Director, 22/02/2019.

Can you avoid insolvency?

Nobody wants to put their company into administration or liquidation. We would all avoid insolvency if we could.

But sometimes a cash crunch leaves us with little other option. We have a good business idea, bust a lack of cash flow has left us unable to avoid insolvency, either by voluntary or imposed upon us by our creditors.

Either way insolvency practitioners, the people who perform the last rites on our beloved business, rarely get much love.

Going up in smoke

One businessman however took it to another level though.

Swansea Crown Court has heard that bankrupt businessman David Lowes-Bird set fire to £70,000 rather than handing it over to officials due to his “hatred” towards insolvency practitioners.

 

Bankrupt Business man David Lowes-Bird withdrew tens of thousands of pounds from his bank account so it couldn’t be claimed by the official receiver – then told the authorities he had simply burned the money rather than handing it over.

The insolvency practitioners petitioned for Mr Lowes-Birds bankruptcy due to extensive business debts and he was also under a bankruptcy restriction order which placed limitations on his business and financial behaviour.

Then Lowes-Bird received nearly £80,000 in an insurance payout. Rather than passing this to the Insolvency Practitioners so it could be passed on to his creditors, the defendant removed the money from his account and told the official receiver he set fire to the cash in order to prevent the insolvency practitioners from getting it.

During  the trial he then changed his story and claimed he had actually only burned £30,000 and had instead given a large part of the remaining money to charity – although he could offer no proof of this.

Mr Lowes-Bird, was convicted of one count of the fraudulent removal of property following the three-day trial.

Recorder Simon Mills described the defendant’s actions as “wicked, arrogant and actually very stupid” and sentenced him to six months in prison suspended for 12 months.

Glenn Wicks, chief investigator for the Insolvency Service, said after the conclusion of the case, the defendant had been driven by his “hatred” of the insolvency practitioners he owed money to.

He said: “David Lowes-Bird could have paid the £30,000 debt owed to the insolvency practitioners. However his hatred towards them and sense of injustice was his motive, which ultimately led to his downfall.”

 Can you avoid insolvency?

The collapse of your business due to financial pressures is not doubt stressful, but can you avoid insolvency?

Rather than put your business in the hands of insolvency practitioners, can you find that injection of cash that you need to avoid insolvency proceedings?

There may be a hidden source of capital within your business that is currently unrealised.

If you trade with other businesses and were often paid late then you could be entitled to significant compensation.

Under little known and barely used legislation your business could be due huge sums that you didn’t even know you were due.

That compensation may be enough to help you avoid insolvency, get through your cash-flow difficulties and save your business – thrive even!.

And even if you are not able to completely save the business and avoid insolvency, that compensation could at least give you a much better and healthier exit.

How can CPA help?

CPA has developed a unique technology to dig into your accounting records and discover the cash injection you are due by means of compensation. The software does all the hardwork. Our software interacts over the cloud with over 300 different software packages, working directly with your accounts package, just so long as it’s stored on a computer.

We do the work, you receive the cash.

If you have supplied goods and services to businesses on credit and were regularly paid late then you could be due significant sums in late payment compensation.

We are talking to companies and unearthing claims in the hundreds of thousands from former business customers who paid them late. Large business customers who abused their power to inflict unfair and sometimes illegal payment practices.

We are helping companies that were looking to close down, who looked insolvent and finding that cash injection they need to avoid insolvency.

The Credit Protection Association has been protecting smaller firms against poor payment practices for over 100 years.

We are passionate about breaking the late payment culture that holds back the UK economy and threatens many SMEs with cash flow difficulties being the single biggest killer of Britain’s small businesses.

If you were regularly paid late we can help. Those former customers used you to boost their own cashflow, regularly paying you late.

As a result you had extra costs, you had the distraction of having to chase payment, you had opportunity costs because your capital was tied up in their late invoices.

Under little used legislation, you are entitled to compensation for those late payments.

Now you can boost your own cash-flow.

CPA can help unearth the those hidden treasures.

We have the technology to reveal the compensation you are due and we have the extensive experience and expertise to then turn those claims into cash.

Yes, CPA can help you avoid insolvency.

Don’t let your business go up in smoke, don’t burn your cash, contact CPA today.

Read our blog here on how to break the late payment culture.

visit our late payment compensation page

See our full blog and FAQ on late payment compensation

About CPA

The Credit Protection Association can help!

Formed in 1914, CPA has been providing credit management services to SMEs for over 100 years.

At the Credit Protection Association, we provide first class credit information that can help you avoid being over extended to customers who are at risk. Our monitoring service can flag up warning signs long before the end, giving you the chance to adjust and reduce your exposure. We provide recommended credit limits and credit scores on a traffic light system and can help you set appropriate credit policies for your customers.

We regularly publish lists of the latest insolvencies but by then it is too late. Our credit reports however predict approximately 96% of company insolvencies long before they arrive.

Companies in trouble usually have very bad bad cash flow and they try to deal with it by delaying payment to their suppliers, increasing your exposure to them.

If you supply to restaurants, help us help you identify the risks.

As a third party collector, we can also get your payments prioritised over those who are not as hot on collections. When you customer receives a letter from the Credit Protection Association regarding their outstanding account, they are going to want to get that resolved as a priority. Our overdue account recovery service can get your unpaid invoices to the top of their “to do” list and get your invoice paid.

Over the years we have collected billions in overdue invoices for our customers.

Our debt recovery and credit management services give our members the financial freedom needed to grow and prosper, while our new Late Payment Compensation department could unlock hidden potential and offer the compensation needed to springboard your business to success.

Ready to speak to an advisor?

For help or advice on credit management, entirely without obligation.

Call us today

0330 053 9263

The Credit Protection Association is a credit management company established in 1914. If you supply goods or services on credit then we can help you!

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Read our blog here on how to break the late payment culture.

visit our late payment compensation page

See our full blog and FAQ on late payment compensation

How many excuses are there for non-payment?

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