Business rescue options
Business rescue means saving a viable company rather than closing it, and in the UK there are several formal and informal routes. The key question is viability: can the business trade profitably once the immediate pressure is dealt with? If yes, rescue usually beats liquidation for directors, staff and creditors alike. If no, an orderly liquidation is more honest. Corporate Insolvency and Governance Act 2020; Insolvency Service
- The key test
- Is the business viable once pressure is dealt with?
- Best time to act
- At the cash flow problem stage, not when a petition lands
- If viable
- Rescue usually beats closure for everyone
Talk it through, free and confidential No obligation. We review your situation and point you to the right next step.
Which route: CVL, CVA or administration?
1. Is the underlying business viable and worth saving? If not, the route is a CVL.
2. If it is viable, does it need urgent protection, or is a sale the best outcome? If yes, administration. If it can pay over time, a CVA.
- CVLCreditors' Voluntary Liquidation
- Business not viable. Close it properly: assets are sold, creditors paid in order of priority, the company dissolved.
- CVACompany Voluntary Arrangement
- Sound business, affordable payments. Directors keep control and repay creditors over 3 to 5 years, supervised.
- AdministrationRescue or going-concern sale
- Needs urgent protection or a sale. A practitioner takes control and a moratorium stops creditor action.
At a glance
| Route | Type | What it does |
|---|---|---|
| Renegotiating with creditors | Informal | Agree new terms with the creditors you owe |
| Time to Pay | Informal | An instalment plan agreed with HMRC for tax arrears |
| Raising finance or cutting costs | Informal | Closes a cash gap without a formal procedure |
| Company Voluntary Arrangement | Formal | Repay historic debt over three to five years while trading |
| Administration | Formal | A moratorium protects the company while a rescue or sale is arranged |
| Statutory moratorium | Formal | Breathing space under the Corporate Insolvency and Governance Act 2020 |
Start upstream, not at the cliff edge
Rescue options are widest when you act early, at the cash flow problem stage, not when a petition lands. The earlier a practitioner sees the numbers, the more of these tools remain open. A Licensed Insolvency Practitioner can assess viability and recommend the right route, often on a free first call.
Where to go from here
- If you decide to speak to a Licensed Insolvency Practitioner, choose your own: our practitioner directory lists every practitioner on the official Insolvency Service register, and how to choose an insolvency practitioner explains what to ask. Always confirm their entry on the official register before you instruct anyone.
Common questions
Can an insolvent company still be rescued?
Often yes, if the underlying business is viable. A CVA or administration can deal with historic debt while the business keeps trading. Viability, not current debt, is the deciding factor.