Chris and his two brothers had an industrial cleaning company in the Midlands for just 3 years. It was their first business, and they were proud of how well they were doing. Unfortunately, their clients got slower at paying, and the lack of cash flow began to strangle the business.
Looking back we were probably quite naïve, we had been patting ourselves on the backs just 3 months before the problems became serious. To be frank we didn’t notice the issues at first, clients who used to pay us after 7 days were now taking 3 weeks to pay us, this then went to a month. Within that 3 month period we went to waiting 60 days for payment.
Suppliers’ problems because of clients not paying
Our suppliers just weren’t prepared to wait that long to get paid, most of the time we would have two or three outstanding invoices in place when we did make a payment.
It got to the stage where we just could pay ourselves as we trying to keep accounts open to do the work – it was madness.
We really didn’t know what to do.
An Insolvency Solution from the Internet
Eventually I did some digging on the Internet and came across an article from Zennet Solutions, it spoke of ways of dealing with debt problems and how liquidation could help. I really didn’t want to Liquidate, as I thought I could never go into business again, but I did need advice. So I gave them a call.
I feel sorry for the chap who took the call, the panic in my voice must have been obvious. He was really patient though, I told him I didn’t want to Liquidate so we explored what other options were available.
Liquidation truths uncovered
The writing on the wall was apparent very quickly, as soon as we discussed alternatives, as soon as I realised they weren’t what I wanted.
Taking the bull by the horns, I asked him directly about going back into business about Liquidation, we went through how it would work and how to give the new business the best start. I was obviously wrong about starting again in business after Liquidation.
It was obvious, we didn’t have a lot of choice but to pursue Voluntary Liquidation.
A fast and painless Liquidation
Once we got started, the actual process was very quick and easy, it only took 3 weeks from start to finish!
Zennet Solutions spoke to our creditors on our behalf, and actually managed to rebuild some bridges, I’m still not sure how. But we were able to create new accounts with the important ones for the new business.
Creating the phoenix company
They helped with forming the new business as well. We needed to make sure that we didn’t get the same problem again, so they helped put a credit control system in place given the amount of advice they gave us I’m surprised it didn’t cost the earth.
Now our new business is growing, it’s been 3 months. I really believe that the credit control system they put into place has been invaluable. The Liquidation itself was straight forward, any time we needed advice they were just a phone call away.
It seems weird now, that I might have missed this opportunity if I had not checked on what I thought the truth was.