Insolvency is often a direct result of financial instability, poor cash-flow and mounting debts. Although cash flow is a principal factor for evaluating a companys insolvency, there are many other elements which can contribute to your poor financial condition.
Business insolvency is certainly the last term you would want to hear. This happens when you are unable to pay the bills or loan instalments on time due to a plethora of reasons. Inability to meet your expenses does not necessarily mean that your business is at the verge of insolvency. However, if you doubt that your company is sufficiently solvent, then follow the steps given below to identify if your company is moving towards insolvency.
Take Insolvency Tests
Start by ta…
Read the full article at: http://www.bmmagazine.co.uk/in-business/advice/think-company-insolvent/