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Is My Business Insolvent?

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The Insolvency Act lays down a few simple insolvency tests, two of which stand out:

  • Balance sheet test – Are your assets less than your liabilities? If yes, you are insolvent. If no, you are probably not insolvent, however;
  • Cash flow test – Can you pay your debts as they fall due (e.g. pay by 19th of the following month)? If yes, you are not cashflow insolvent. If no, you are probably trading insolvently and might have a problem.

Can Your Business Be Saved? What To Do When Your Business Is Facing Liquidation

If your business is in trouble - if you are facing creditor debts, HMRC debts, or struggling to meet payroll, then you could be facing liquidation. Can your business be saved? Download our free guide, 'What To Do When You Are Facing Liquidation' now.

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