Rescue your business with a Company Voluntary Arrangement (CVA). Avoid liquidation, reduce debts by up to 80%, and keep trading while paying creditors over time.
A CVA allows you to continue trading while paying creditors a reduced amount over 3-5 years. It's often the best alternative to liquidation for viable businesses with temporary cash flow problems.
CVA success stories since 2010:
A Company Voluntary Arrangement (CVA) is a formal agreement between a company and its creditors to pay back debts over an extended period, typically 3-5 years. It's designed for businesses that are fundamentally viable but experiencing temporary cash flow difficulties.
We prepare a detailed proposal showing how creditors will be paid over time, typically offering 20-40p in the pound.
Creditors vote on the proposal. We need 75% approval by value of debts to proceed.
Once approved, you make monthly payments as agreed while continuing to trade normally.
After 3-5 years, remaining debts are written off and your company is debt-free.
CVAs have a 92% success rate when properly structured and managed by experienced professionals.
| Feature | CVA | Administration | Liquidation |
|---|---|---|---|
| Director Control | ✅ Retained | ❌ Lost | ❌ Lost |
| Continue Trading | ✅ Yes | ⚠️ Maybe | ❌ No |
| Debt Reduction | ✅ 60-80% | ⚠️ Variable | ✅ 100% |
| Duration | 3-5 years | 12 months | 6-12 months |
| Business Survival | ✅ High | ⚠️ Medium | ❌ None |
CVAs work best for viable businesses with temporary cash flow problems. Here's how to determine if a CVA is right for your company.
Your business is likely suitable if:
Your business is fundamentally sound with good future prospects
Problems are due to temporary factors, not fundamental business failure
Creditors are likely to accept reduced payments over liquidation
Can generate enough cash to make CVA payments and cover ongoing costs
Directors are committed to the turnaround process
Consider alternatives if:
Core business model is flawed or market has permanently changed
Cannot generate enough cash to make CVA payments
Major creditors are unlikely to support the proposal
Liquidation would provide better returns to creditors
History of director misconduct or trading while insolvent
Not sure if a CVA is right for your business? Our experts will assess your situation and provide honest advice on the best way forward.
Comprehensive review of your situation
Your information stays private
Honest advice with no pressure
Understanding the CVA process helps you prepare and increases your chances of success. Here's exactly what happens from start to finish.
We conduct a thorough review of your business finances, assess viability, and determine if a CVA is the best option.
We prepare a detailed CVA proposal including payment terms, business projections, and nominee's report.
Creditors and shareholders vote on the CVA proposal. We need 75% approval by value of debts.
Once approved, the CVA becomes legally binding and monthly payments begin as agreed.
Understanding the costs involved helps you budget properly for your CVA
For preparing and presenting the CVA proposal
Annual fees for CVA supervision
Official court filing fees
Over the full CVA term
While CVA costs may seem significant, they're typically far less than the debts written off. For example, if you owe £200,000 and pay 30p in the pound (£60,000) plus £20,000 in CVA costs, you save £120,000 compared to paying in full.
Every business rescue option has pros and cons. Here's an honest assessment of CVAs to help you make an informed decision.
Why CVAs are often the best option
Unlike administration, you keep full control of your business and can continue making strategic decisions.
Typically pay only 20-40p in the pound, writing off 60-80% of unsecured debts.
Business operations continue as usual, maintaining customer and supplier relationships.
Once approved, creditors cannot take enforcement action or wind up the company.
Payments can be structured to match your cash flow, with seasonal adjustments if needed.
Maintains goodwill, customer base, and business relationships that would be lost in liquidation.
Potential drawbacks to consider
Need 75% approval by value - if major creditors object, the CVA fails.
Typically 3-5 years of monthly payments - a significant long-term commitment.
CVAs are publicly registered, which may affect your credit rating and business reputation.
Annual supervisor fees of £2,000-£5,000 throughout the CVA term.
If you can't maintain payments, the CVA fails and liquidation may follow.
Obtaining new credit during the CVA term can be challenging due to the public record.
Our 92% success rate comes from focusing on these critical factors
Conservative cash flow forecasts that you can actually achieve
Early engagement with major creditors to secure support
Implementing necessary business improvements during the CVA
Regular review and adjustment to ensure continued success
See how we've helped UK businesses rescue themselves through CVAs, saving jobs and preserving value for all stakeholders.
Fashion retailer with 12 stores
A fashion retail chain with 12 stores across the UK was struggling with £850,000 in debts following the COVID-19 pandemic. Landlords were threatening to forfeit leases, and HMRC was pursuing £180,000 in unpaid VAT and PAYE.
We negotiated a CVA paying 25p in the pound over 4 years, with seasonal payment adjustments to match retail cash flow patterns. The proposal included store rationalization, closing 3 underperforming locations.
CVA approved with 89% creditor support. The business saved £637,500 in debt write-offs, retained 45 jobs, and completed the CVA successfully in 2023.
Regional construction contractor
A construction company with £1.2M debts after a major contract dispute. Suppliers were on stop, HMRC was demanding £320,000, and the bank had withdrawn facilities.
CVA proposal offering 30p in the pound over 5 years, with higher payments in years 3-5 as the business recovered. Included new working capital facility and improved project management systems.
Approved with 82% support. Company saved £840,000, retained 28 employees, and has since grown turnover by 40% during the CVA period.
Independent restaurant group
Restaurant group with 5 locations owing £680,000 after lockdown restrictions. Rent arrears of £240,000 and supplier debts threatening food supply chains.
CVA offering 35p in the pound over 3 years, with rent reductions negotiated as part of the proposal. Closed 1 unprofitable location and invested in delivery capabilities.
91% creditor approval achieved. Business saved £442,000, maintained 52 jobs, and successfully adapted to post-pandemic trading conditions.
Don't let debt destroy what you've built. Our CVA experts will assess your situation and provide honest advice on whether a CVA is right for your business.
Comprehensive review with no obligation
Your information stays private
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Common questions about Company Voluntary Arrangements
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