Rescue your business from
creditor pressure!

A Company Voluntary Arrangement (“CVA”) may be the answer to preserving your business, protecting your cashflow and allowing you to rebuild sales and subsequently
pay a percentage of your creditors from future profits.

A CVA is basically an arrangement between a company and its creditors, to pay the creditors a percentage of what they are owed from future profits.

To enable you to consider  a CVA, your business must be viable and one that you are certain can be returned to profitability.

It is important to remember that if your business is insolvent and you continue to trade, as a director you have a duty to protect the creditors’ position. A CVA will enable you to fulfil this duty.

Key components to the success of a CVA are:

• A viable business that can be returned to profitability
  
  
• The introduction of sufficient levels of working capital together with a restructure
  of the existing debt
  
  
• Changes to the management culture of the business
  
  
• Profit forecasts which will allow for a disciplined repayment programme for creditors
  
  
• The preparation of a detailed business plan and creditor proposal including 3-5 year financial forecasts
  
  
• Good communication with your creditors at all stages of the process.