Company Debt

Company debt is a fairly common, but presents a serious challenge for a business.

It’s also the main reason that directors come to us for assistance.

Debt can arise for a variety of reasons. We’ve listed some common and other less common reasons for debt issues:

Common reasons for company debt

  • A major client has been placed into administration or liquidation and owed the business a significant sum.
  • Rapid expansion has resulted in a business taking longer than expected to pay back its initial investment.
  • A problematic project has run up additional, unexpected and significant costs (especially common in construction).
  • Increases in price of suppliers / raw materials.
  • Other businesses are moving into the market and are operating at a loss in order to take market share.
  • Customers are not buying as much as they used to previously due to the economic situation.

Less common, but equally problematic

  • A director or employee of the company committed a fraud and took money out of the business.
  • The board could not agree on a way forward for the business.
  • Tax issues with HMRC.

These are just a few of many examples of how a company might accrue debt.

If your business is struggling with debt there are solutions available. Get in touch with Hudson Weir to find out your options.

logo-w

Hudson Weir are an established firm of Insolvency Practitioners who specialise in business recovery and corporate financial solutions. Hudson Weir provides industry leading, nationwide services for its clients with the intention of easing financial pressures and providing recovery strategies for struggling businesses.

More about us

Hudson Weir Ltd (Company number 09477593) is a company registered in England and Wales.

Average Rating of 5 Stars