Contrary to claims from some quarters, Insolvency Practitioners (IPs) are not the enemies of business.
Whereas some paint the industry as vultures, waiting to pick over the corpses of failed businesses, the reality could not be further from the truth.
What is an Insolvency Practitioner?
An Insolvency Practitioner is a professional (usually a Chartered Accountant) who specialises in working with struggling businesses. To qualify for a licence to act as an Insolvency Practitioner requires additional qualifications beyond those of a regular Chartered Accountant. This licence will authorise the practitioner to act on behalf of an insolvent company or individuals. The Insolvency Practitioner will be rigorously monitored by their licencing body to ensure they always act ethically and in the best interests of those who they represent.
What does an Insolvency Practitioner do?
The actions of an Insolvency Practitioner will depend on the state of the struggling business and also the stage at which they are called in. Whenever possible, an IP will look for a way to rescue the business. In general, the earlier the IP is brought in, the greater the likelihood of a successful rescue.
Where a matter is referred to an IP too late, or, if the business is for whatever reason irrecoverable, the IP will take steps to ensure the interests of the parties exposed to the failure (eg employees and creditors) suffer the minimum possible loss.
So, why are the naysayers wrong?
Those who claim that Insolvency Practitioners are an enemy to business, only appearing when it is time to measure up the coffin, are being disingenuous to what an IP does.
An IP can be thought of as a doctor for businesses. We would all prefer to not need the doctor but it is nice to know they are available when required. Regrettably, not every patient can be saved but that does not mean the doctor has not tried their upmost. The same applies to an Insolvency Practitioner.
Licensed Insolvency Practitioners will provide professional advice to businesses that have mounting debts and are experiencing a range of difficulties. By providing tailored solutions they can help to ensure the ongoing viability and the longevity of a company, partnership or individual.
Accepting independent and informed debt advice from an IP can mean the difference between a business going under and one that remains solvent.
Seeking insolvency advice at the earliest opportunity is the key to protecting your business and assets. Gibson Hewitt has a team of Licensed Insolvency Practitioners who can offer emergency debt advice and protect your interests. To find out more, contact Gibson Hewitt today.