Tom was in his early forties running his own business for the past 7 years, for the last 2 years Tom had not been able to take his family on holidays. Business was slow and the economy was not helping with the doom and gloom but the business debts kept rising each month.
Like most honest hard working business owners Tom borrowed more money against his house, on his credit cards and even from other members of his family with a view to paying it all back once things picked up. But the business debts were just spiralling out of control and Tom was not prepared to call it a day because he had so much ridding on his business.
How will he pay the bank back, his credit cards and family if the business failed was the question that kept him awake at night? Tom’s family did not know the full picture of the business debts that Tom had accumulated, VAT debts, PAYE debts now known as HMRC debts, bank overdraft, credit card debts and also supplier debts.
One morning driving to work and listening to his radio, Tom heard a man talking about the economy and the debts that small business owners were facing and how most had been doing exactly like Tom borrowing more money to try and dig themselves out of debts but only to find a month or two later that they were deeper.
Tom could relate to this man on the radio because he made sense in what he was saying about facing up to the business debts and doing something so you can sleep easy at nights.
That was the hardest moment in Tom’s life to pick up the phone the next day and call the person who was on the radio show and share his business problems with a total stranger. After talking with this man, it all seemed so simple on how to handle all his business debts. Surely it can’t be all that simple Tom thought to himself. After all Tom had over £211,000 worth of company debts inc VAT, PAYE (HMRC) and suppliers too. But Tom had done his homework before calling this man Moe Nawaz who had created 100’s of debt strategies for business owners since 1989 and got them out of debts. Tom had found 1,000’s of pages of articles, blogs, video, interviews, press releases and testimonials about Moe Nawaz on Google.
A week later Tom had a meeting with Moe at Pall Mall in London, Moe and Tom spent about 3 hours looking at ways to reduce or eliminate the business and personal debts that Tom was now carrying.
Tom now had 3 options on the table, a CVA, Pre-Pack or a Liquidation. Tom went for the Pre-Pack administration route. Then Moe began to break down in details of a pre-pack, costs, buy backs, up side of a pre-pack and the down sides of a pre-pack, creditors rights and so on….
There were more down sides to the pre-pack route for Toms company, so it was decided to go for a company liquidation and buy back select assets of the company and re-start a new company without having to carry over the old company’s debts. This was by far the cheapest rout for Tom and all the company debts he had with his business. Between liquidating Tom's old company and starting his new company Tom took a two week holiday with his family.
If your business has debts, be it HMRC for VAT, PAYE, bank debts or supplier debts, why not call our Directors Helpline and ask to speak with Moe Nawaz and see how he can help you to sleep easy at night. Tel: 0800 24 0800.
Author – Speaker – Insolvency Auditor — Strategist
Filed under: BUSINESS DEBTS
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