Simple Liquidation blog

Lockdowns in 2020 and early 2021 due to the coronavirus pandemic hit many businesses across the UK hard. To help small businesses that were, and are, struggling to survive due to Covid-19, they were able to apply for funding via a Bounce Back Loan Scheme introduced by the Government in May 2020. The loan allowed small businesses to borrow up to £50,000 with no repayments for a year and no interest charged on the amount during that time either. Approximately a quarter or all UK businesses applied for a Bounce Back Loan, totalling £47 billion, according to the National Audit Office. 90% of loans were taken out by small businesses that have a turnover of less than £650,000. However, the Department for Business, Energy & Industrial Strategy, who manage the scheme, estimated that 37% of all Bounce Back Loans won’t be repaid. With many Bounce Back Loans now beyond their initial repayment-free, interest-free 12 month period, or reaching that time, what happens if a company can’t either st...

There are always a number of controversies within the world of business, and one of the most prevalent recently has been the investors who managed to lose £8 million in a care home property scheme. They were duped into paying out for plans to convert 80 apartments in County Durham. These plans were never going to be completed, as was found out following investigations triggered by insolvency. Insolvency is a common term where companies can no longer meet the financial obligations they owe to their different lenders and creditors. When they have many debts outstanding and cannot make the right amount of income to pay off these debts, the company is deemed insolvent. Before insolvency proceedings begin, an organisation will probably likely try to set up payment plans with their creditors where they can agree on a monthly amount that will be paid in order to meet their financial liabilities. If no agreement can be made, then insolvency proceedings begin. As discussed above, insolvency is ...

Have you decided that it’s time to retire? Is it finally time to hang up your suits, tuck away the computer and focus on having a bit of time to yourself? Retiring can be a great feeling, as you give yourself the freedom to do the things you’re yet to have done and go to the places that you’re yet to have seen. If you work a regular job then retiring is easy as you simply stop working there; however, if you own your own business then taking the right steps towards closing it down can prove to be somewhat tricky. If you currently find yourself in this position then be sure to keep reading as here we will be discussing the best ways to close your limited company when retiring. When it comes to closing your company upon retirement, there are a few different options available. If your company is dormant and you do not have any assets in it, shareholders on board or creditors then it is possible you can just dissolve the company going through the necessary channels in Companies House.  ...

There are different types of liquidation that exist in the UK, and each of these forms of liquidation could be used depending on what the business’s circumstances are. Specific circumstances apply to specific procedures, and one of the first things to consider is whether the organisation in question is solvent or insolvent. A solvent company has the ability to use a Members Voluntary Liquidation in order to close down after they have distributed the correct amount of funds to shareholders. If a company is insolvent, then they are going to either need to enter into Creditors’ Voluntary Liquidation or Compulsory Liquidation. In this article, we will be having a look at these three different types of liquidation and what their purposes are as well - 

In April 2020, the government launched their Bounce Back Loan Scheme (BBLS) to help small and medium-sized businesses through the coronavirus pandemic. It allowed companies to borrow up to £50,000, depending on turnover, at a very low-interest rate and without having to pay a penny towards paying back the loan for 12 months. The government collaborated with leading banks and financial firms who offered and managed the BBLS initiative, including Natwest, TSB and the HSBC Bounce Back Loan. In May 2021, some of the first receivers started to pay back their loans but as it became clear that Covid-19 was still with us and with many restrictions still in place, recovery for businesses was extremely slow. So the government announced their Pay As You Grow (PAYG) scheme, where companies were able to get support in paying back their loans, including extending the loan period. Check HSBC Bounce Back Loan Repayment Extension 

The Chancellor, Rishi Sunak, announced a series of financial measures in 2020 to help businesses through the coronavirus pandemic. One of those initiatives was the Bounce Back Loan which was launched in April 2020. It allowed small and medium-sized businesses to borrow up to £50,000, depending on turnover, at a very low-interest rate. As well as being guaranteed by the Government, businesses and organisations didn’t have to start paying back the loan for 12 months. From that point, payments are made over a six-year or extended to a 10-year period if they were still struggling financially. However, calculating how much your monthly repayments will be has caused some confusion among business owners/directors. Whilst no arrangement fees are added to the loan figure, and the interest rate charged is low for the duration of the loan, many hadn’t included the Business Interruption Payment (BIP) figure. This is the sum of money paid to the lending parties by the Government to cover the 12 mon...

Lockdowns in 2020 and early 2021 due to the coronavirus pandemic hit many businesses across the UK hard. To help small businesses that were, and are, struggling to survive due to Covid-19, they were able to apply for funding via a Bounce Back Loan Scheme introduced by the Government in May 2020. The loan allowed small businesses to borrow up to £50,000 with no repayments for a year and no interest charged on the amount during that time either. Approximately a quarter or all UK businesses applied for a Bounce Back Loan, totalling £47 billion, according to the National Audit Office. 90% of loans were taken out by small businesses that have a turnover of less than £650,000. However, the Department for Business, Energy & Industrial Strategy, who manage the scheme, estimated that 37% of all Bounce Back Loans won’t be repaid. With many Bounce Back Loans now beyond their initial repayment-free, interest-free 12 month period, or reaching that time, what happens if a company can’t either st...