A Company Voluntary Arrangement is a formal payment agreement between a company and its creditors allowing repayment of a debt over a period of time, usually with a portion of the debt written off in the process.
Creditors faced with receiving nothing if a company ceased to exist, would rather vote for the Company Voluntary Arrangement than face losing out altogether.
Company Voluntary Arrangements save businesses, allowing you to continue to trade and your creditors to still get paid, alleviating the financial pressure on them as well.
You may have been told that you can’t set up a Company Voluntary Arrangement or that a Company Voluntary Arrangement is not right for your company. We often hear this and in your case it may be true. What if you have been given incorrect information?
Would you want to save your business? We don’t know one way or another whether a Company Voluntary Arrangement is the right course of action until we know the facts. But we do know that if it is, then setting up a Company Voluntary Arrangement is easy and hugely beneficial for shareholders.
If you company owes creditors, including HMRC, more than £20,000 and there is there is still potential for continued sales at a profit, then your company may be suited to propose a CVA.
Talk to TaxGone today on: 01302 815846
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