The Government furlough scheme ends on 30th September and no indications have been given that it will be extended. Some argue that there is no need to do so if there are no restrictions on businesses operating normally. However, some predict an avalanche of liquidations and bankruptcies.
How is it possible to determine if a business is in financial distress i.e. the business is unable to generate enough revenue or income to meet its financial obligations?
This is usually apparent from reviewing the financial accounts of the business. Listed below are some typical red flags:
If you recognise one or more of the above in your business or your customer’s business before or after the end of this month, do not delay acting. Timing is critical to success. The moment to take advice is when the above red flags appear.
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