When Should You Speak to a Licensed Insolvency Practitioner?

Running a business comes with its fair share of challenges. Fluctuating cash flow, mounting debts, and tough trading conditions are hurdles many directors face. But how do you know when it’s time to seek professional advice? More importantly, when should you speak to a licensed insolvency practitioner?

If you’ve found yourself asking this very question, you’re not alone. Many company directors delay seeking support, often hoping that things will improve. But acting early can make all the difference between saving your business or having no choice but to shut it down.

Warning Signs That Shouldn’t Be Ignored

If your company is facing ongoing financial pressure, recognising the early indicators of trouble can help you take proactive steps. Here are a few common red flags:

Persistent cash flow issues – You struggle to pay suppliers, HMRC, or staff wages on time.

Creditor pressure – You’ve received statutory demands, winding-up petitions, or threatening letters from lenders.

Overdue taxes – You’re falling behind on PAYE, VAT or Corporation Tax liabilities.

Relying on short-term borrowing – You depend on credit cards, director loans, or personal savings to keep trading.

These situations can escalate quickly, and that’s precisely when to contact an insolvency practitioner. Getting the right guidance early allows you to understand your options, whether that’s restructuring, formal insolvency, or finding an exit route that protects you legally and financially.

Knowing when to contact an insolvency practitioner can save your business, your personal finances, and your peace of mind. Whether you’re facing cash flow issues, HMRC pressure, or just not sure what’s next, don’t wait for things to worsen.

At Simple Liquidation, our team of experienced insolvency professionals offers honest, practical advice with no pressure and no hidden costs. We’re not a broker or middleman; we’re fully licensed practitioners who will guide you every step of the way.

Speak to a Licensed Insolvency Practitioner

Location: London, UK

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