CVA preparation for your business

For a company voluntary arrangement or CVA to be successful, you will need to have a proactive approach to your business, control of your costs, and a strong management structure. We outline some important steps for CVA preparation below, to best help your business. (And perhaps, after completing these steps, your business might end up not needing a CVA after all!)

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CVA preparation: how best to prepare your business for a CVA

Because it’s a formal insolvency process, putting forward a CVA requires an insolvency practitioner to agree that your CVA has a fair chance of being accepted and is therefore recommended. As insolvency practitioners, in order to do this, we need to see evidence that you have gone through each of these steps:

Stage 1. Cost analysis review and implementation

Prior to a restructuring, it’s usual for most of your time to be taken up with cash management, and ‘firefighting’. Now you need to make time for cost analysis and implementation.

 

Review all aspects of your business to see where savings can be made. This should include:

  • Leases
  • Suppliers
  • Finance agreements
  • Staffing
  • Directors / shareholders

If you can bring finance agreements or leases to an end, or find less costly premises, then now is the time to do that. Bear in mind that any shortfall costs or termination charges will be a debt within the CVA, which will limit the effect on cashflow.

 

A word of warning though – make sure you check for any personal guarantees before ending leases or finance agreements. If you have given any guarantees, a plan will need to be made to deal with them.

CVA FREQUENTLY ASKED QUESTIONS

How much does a CVA cost?

Placing a company into a voluntary arrangement costs between £3,000 and £10,000, depending on the size of your business and how many other businesses you owe money to. If you would like a free, no obligation online quote for your business click here.

How much does a CVA cost?

Placing a company into a voluntary arrangement costs between £3,000 and £10,000, depending on the size of your business and how many other businesses you owe money to. If you would like a free, no obligation online quote for your business click here.

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