Company Voluntary Arrangement (CVA) help and advice for UK company directors
If your business is suffering cash flow problems, you may have been forced into a situation where you are spending more time dealing with pressure from creditors than concentrating on running your business. In this scenario, a Company Voluntary Arrangement (CVA) could be the perfect solution to your company’s problems.
At Coopermurphy, we help directors navigate these high-pressure moments and understand whether a CVA is appropriate, or indeed whether other options are more beneficial to them.
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At Coopermurphy we have over 50 years of experience providing insolvency, liquidation and company debt advice to business owners.
We understand how challenging it can be when dealing with financial difficulties within your business. It’s easy to ignore the problem and hope that it disappears, but this is often the worst thing you can do.
Our dedicated team is here to provide honest, valuable advice to help UK company directors.
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What is a CVA and is it right for my business?
A CVA is an option for companies in financial difficulty. It is a legally binding agreement with the company’s creditors to allow a proportion of debts to be repaid over a specified period.
75% of the creditors by value must agree to this process, and if so, it can be one of the best ways for a business to recover and thrive after being burdened by historic debt. A CVA is like an IVA used by those who have personal debt. It will allow the company to repay the specified proportion of its debts over 1 to 5 years.
CVAs were introduced to UK law in 1986 and are generally preferred by the government to save a company from closure.
It is advisable to speak with an expert in this field to help you properly navigate your way through the company’s challenges.
When to consider a CVA for your business?
CVAs can be extremely useful for limited companies which find themselves with mounting debts that they are struggling to repay and, therefore, are facing insolvency. It is also often the case that the debts might be historical and are holding the company back from thriving when it would otherwise be a going concern.
You may apply for a CVA under the following circumstances:
● The company is currently insolvent
● An insolvency practitioner has determined that the business is still viable despite its current difficulties
If the latter, the company must demonstrate that it will be able to repay creditors plus honor other obligations such as salaries and VAT and still remain profitable in the future.
It is advisable to speak with an expert in this field to help you properly navigate your way through the company’s challenges.
When to consider a CVA for your business?
CVAs can be extremely useful for limited companies which find themselves with mounting debts that they are struggling to repay and, therefore, are facing insolvency. It is also often the case that the debts might be historical and are holding the company back from thriving when it would otherwise be a going concern.
You may apply for a CVA under the following circumstances:
● The company is currently insolvent
● An insolvency practitioner has determined that the business is still viable despite its current difficulties
If the latter, the company must demonstrate that it will be able to repay creditors plus honor other obligations such as salaries and VAT and still remain profitable in the future.
It is advisable to speak with an expert in this field to help you properly navigate your way through the company’s challenges.
Our focus is on you, the director - not your creditors.
We completely understand the emotional anguish company directors like you face when considering the future of your company – and the knock-on impact this can have on your personal life.
Our expert team will outline all of your options in a jargon-free, easy-to-understand way and advise you and your business on the best route forward – with the goal of protecting you and your personal assets.
Contact us for a confidential, no-obligation conversation.
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The sooner you speak to our business rescue experts, the better the potential outcome. Our initial conversation is completely free, with no strings attached, and absolutely confidential.
- Free initial consultation
- 100% confidential
- We work for you – the Director
- Protect your personal assets
- Tailored plan unique to your situation
Book a Free Consultation
A Company Voluntary Arrangement (CVA) is a formal agreement between a company and its creditors to repay some or all of its debts over an agreed period. It allows a financially distressed company to continue trading while making affordable payments under the terms of the arrangement.
A licensed insolvency practitioner works with the company to assess its financial position and prepare a CVA proposal. The proposal is then presented to creditors for approval. If approved by the required majority, the company makes agreed payments over the specified period while continuing its normal business operations.
Yes. A CVA can provide an alternative to liquidation where a company is struggling with its debts but remains viable. By restructuring repayments and giving the business time to recover, a CVA may allow the company to continue trading rather than being wound up.
The company's debts are dealt with according to the agreed terms of the CVA. The company normally makes regular payments from available cash flow over the agreed period. Creditors included in the arrangement are generally bound by its terms once it becomes effective.
A CVA commonly lasts around 3 to 5 years, although the exact duration depends on the company's circumstances and the terms agreed with creditors. The payment schedule and other conditions are set out in the approved CVA proposal.
Yes. One of the main benefits of a CVA is that the company can usually continue trading while making payments under the arrangement. This can give the business an opportunity to improve cash flow, stabilise operations and work towards long-term financial recovery.
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