When your company faces financial difficulties, knowing your options can mean the difference between rescue and closure. This comprehensive guide helps UK directors navigate CVAs, administration, time-to-pay arrangements, and liquidation alternatives.
At Tenable Business Support, we're on your side. Unlike insolvency practitioners who often represent creditor interests, we work exclusively for you—the director.
Our team offers real, down-to-earth business advice from people who have lived through the issues you now face. We understand the pressure, the sleepless nights, and the difficult decisions ahead because we've been there ourselves. You're not just getting advice—you're getting experience, empathy, and practical solutions.
If your business is struggling financially, you're not alone—and you have options. Understanding the different business rescue options available can help you make informed decisions that protect both your company and your personal assets.
Timing is everything. The earlier you seek professional advice, the more options you'll have available. Waiting until creditors are taking legal action significantly limits your choices and increases your personal liability risk. If you're seeing early warning signs of financial distress, act now.
Many directors wait too long before seeking help, often because they're embarrassed or hope things will improve. The reality is that early intervention gives you more control and better outcomes. Consider your options if you're experiencing any of these situations:
Struggling to pay suppliers, staff, or HMRC on time
Receiving demands, statutory demands, or winding-up petitions
Debts growing faster than revenue, using credit to pay expenses
Unable to pay debts as they fall due or liabilities exceed assets
Bank refusing additional funding or demanding repayment
Feeling overwhelmed, isolated, or unsure which way to turn
If any of these sound familiar, it's time to explore your options. Remember: seeking professional business support early doesn't mean giving up—it means taking control.
Each business rescue option serves different circumstances. Understanding the pros, cons, and suitability of each will help you make the right decision for your situation.
A formal agreement between your company and its creditors to repay debts over time while continuing to trade.
A Company Voluntary Arrangement (CVA) is a legally binding agreement that allows your company to pay back creditors over an extended period (typically 3-5 years) while continuing normal business operations. It requires approval from 75% of creditors by value.
Businesses with a viable trading model that need breathing space to recover. Ideal when you have temporary cash flow problems but a fundamentally sound business. Learn more about financial restructuring options.
A formal insolvency procedure that protects your company from creditors while an administrator tries to rescue the business.
Administration is a formal insolvency process where an independent licensed insolvency practitioner takes control of your company with the aim of rescuing it as a going concern, achieving better results for creditors than immediate liquidation, or realizing assets to repay secured creditors.
Companies facing imminent winding-up petitions or those that need urgent protection from creditors while exploring sale or restructuring options. Often used for pre-pack administrations where the business is sold to a new company.
An informal agreement with HMRC to pay tax debts in affordable instalments over an agreed period.
A Time to Pay (TTP) arrangement is an informal agreement with HMRC that allows you to spread tax debt payments (VAT, PAYE, Corporation Tax) over a period of time. It's not a formal insolvency procedure and is negotiated directly with HMRC's Business Payment Support Service.
Companies with temporary cash flow problems and HMRC tax debts they can realistically repay within 12 months. Works well when you've received a HMRC Notice of Enforcement or facing other HMRC enforcement action.
A formal process where directors voluntarily close an insolvent company and wind up its affairs in an orderly manner.
A Creditors' Voluntary Liquidation (CVL) is when directors voluntarily decide to close an insolvent company. It's a controlled closure where an insolvency practitioner is appointed to wind up the business, sell assets, and distribute funds to creditors according to legal priority.
Companies that cannot be rescued and have no realistic prospect of repaying debts. When continuing to trade would increase director liability or when facing compulsory liquidation action. Learn more about what happens to directors after liquidation.
| Option | Company Continues? | Director Control? | Debt Reduction? | Typical Cost |
|---|---|---|---|---|
| CVA | Yes | Yes | 20-70% | £5k-£15k+ |
| Administration | Maybe | No | Varies | £10k-£50k+ |
| Time to Pay | Yes | Yes | No | Free |
| CVL | No | No | 100% (for unsecured) | £3k-£8k |
Regardless of which rescue option you choose, protecting yourself as a director should be a top priority. Here are the critical protection strategies:
Review all personal guarantees you've signed. These remain enforceable even after company closure and can put your home and personal assets at risk.
Learn moreAvoid director disqualification (2-15 year ban) by maintaining proper records, avoiding wrongful trading, and cooperating with insolvency practitioners.
Protect yourselfLiquidators can pursue misfeasance claims against directors who breach duties. Seek advice to minimize this risk and protect personal assets.
Understand the risksOverdrawn Director Loan Accounts (DLAs) must be repaid in insolvency and attract S455 tax charges. Address these early.
DLA guidanceMany directors believe "limited company" means complete protection from personal liability. This is a dangerous misconception. Learn the truth in our guide: The Limited Liability Myth and Company Debt Does Not Always Die With The Company.
Is your business fundamentally viable with temporary cash flow issues, or is it structurally unprofitable? Can the business be saved with breathing space, or has it reached the end of its natural life?
Get clear on your total debts, assets, monthly revenue, and expenses. Create a realistic 13-week cash flow forecast. Can you trade out of the problem?
What personal guarantees have you signed? What's your exposure to misfeasance claims or disqualification? Protecting yourself is as important as saving the business.
Don't navigate this alone. Professional advice from someone who understands UK business rescue can save you thousands and protect you from costly mistakes. Our initial consultation is genuinely free with no obligations.
Act early: The sooner you seek help, the more options you'll have and the better your outcomes will be.
No one-size-fits-all: Each business rescue option suits different circumstances. What works for one company may be wrong for another.
Protect yourself first: Understanding your personal liability risks is crucial. Director protection should be a priority alongside business rescue.
Professional advice matters: Expert guidance can save you money, time, and stress while protecting your interests.
You're not alone: Thousands of UK directors face similar challenges. Sometimes it helps to talk to someone who understands.
Full detailed comparison of all options
Read guideLiquidate or rescue your company
Explore optionsWhat to do when facing difficulties
Get helpSupport for overwhelmed directors
Find supportDirector stress and mental health
Learn moreHelpful guides and checklists
View resourcesWhatever your situation, there's a path forward. Book a free, no-obligation consultation with our business support experts to discuss your options confidentially.
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