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. Informal options include renegotiating with creditors, agreeing a Time to Pay arrangement with HMRC, raising finance or cutting costs. Formal options include a Company Voluntary Arrangement, which lets you repay historic debt over three to five years while trading; administration, which protects the company with a moratorium while a rescue or sale is arranged; and a moratorium under the Corporate Insolvency and Governance Act 2020. 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. A Licensed Insolvency Practitioner can assess viability and recommend the right route, often on a free first call. Corporate Insolvency and Governance Act 2020; Insolvency Service

Key facts

Informal routes: Renegotiation, Time to Pay, refinancing, cost cuts
Formal routes: CVA, administration, statutory moratorium
The key test: Is the business viable once pressure is dealt with?
If viable: Rescue usually beats closure for everyone

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.

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.

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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. Informal options include renegotiating with creditors, agreeing a Time to Pay arrangement with HMRC, raising finance or cutting costs. Formal options include a Company Voluntary Arrangement, which lets you repay historic debt over three to five years while trading; administration, which protects the company with a moratorium while a rescue or sale is arranged; and a moratorium under the Corporate Insolvency and Governance Act 2020. 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. A Licensed Insolvency Practitioner can assess viability and recommend the right route, often on a free first call.

Speak to a Licensed Insolvency Practitioner

Tell us briefly what is happening and we will arrange a free, confidential, no obligation call with a Licensed Insolvency Practitioner. The earlier you get advice, the more options you usually have.

Free, confidential and no obligation. We are an independent information service and introduce directors to a Licensed Insolvency Practitioner. This is general information, not regulated advice.