We understand the stress of finding your business in financial difficulty. Whether you are a sole trader or an SME, Libra Business Debt Help has the solution to allow you to move forward.

We measure the success of our business debt advice in Scotland not by the ability of clients to enter a solution, but by their ability to maintain it and ultimately exit the solution – debt free.

bounce back loan repayment

We were approached by an independent car garage who lost a major customer during the outbreak of the coronavirus pandemic. Despite the assistance from the support of the Furlough Scheme, and Bounce Back loans, the company was saddled with a level of fixed costs.

These fixed costs could not be covered from the reduced trading under lockdown and impacted on the companies cashflow. As a result of Covid-19 the Company’s customers put their orders on hold for several months. When orders began to return the Company recommenced trading at full capacity, but the director was conscious that the level of debt needing to be repaid is significant, most of which was made up of a bounce back loan.

Having approached Libra’s team of experienced advisors the Company was able to take advantage of the “Pay As You Grow” scheme, introduced by the Government. The Company took up the option to repay back the loan within 10 years, as opposed to the original 6 years, thus allowing the director to focus on repaying the smaller fixed costs and building the turnover back up to pre-covid levels and beyond.

bounce back loan repayment
  • ‘pay as you grow’
  • independent company
  • covid recovery
we can help

negotiate with creditors

We were consulted by an engineering factory based in Fife. The company has a turnover of £700K. The company’s main customer was French based and did not renew the longstanding contract due to Brexit fears.

The directors identified new markets to operate within however the loss in turnover significantly impacted on the company’s cash flow.

We conducted a review of the company and with the help of projections could support that there was a viable business going forward. We assisted the company directors with an approach to their main creditors. Those creditors were prepared to support revised payment terms on the back of the strength of the figures we provided. This gave the company the breathing space required to trade out of its situation.

The company has since diversified its business model further because of Covid-19 and is now making record profits.

negotiate with creditors
  • record profits with our help
  • help with main creditors
  • turnover of £700,000
we can help

covid recovery

We were contacted by a director of a Company that owned a pub with a small bed and breakfast business near Edinburgh. The Company traded successfully up until the outbreak of the Covid-19 pandemic when it was forced to close its doors.

When some of the restrictions were initially eased, the business was able to recommence trading but was operating on a significantly reduced capacity. A reduction in turnover resulted in delayed payments towards the business’s operating costs. With charges and penalties being applied to an overdrawn overdraft facility, the Company’s debt rose to an unmanageable level.

Realising that the business had gone beyond the point of recovery, she made the decision to appoint one of Libra’s licensed insolvency practitioners as Liquidator. This has prevented debt from continuing to accumulate, and thus preserving the director’s reputation and conduct.

The director has since been able to set up a new Company and renegotiate favourable terms on the lease of the B&B under the new entity. The old Company is now dissolved, and the new Company has begun to thrive now that the easing of the majority of restrictions have been lifted.

covid recovery
  • covid debt
  • licensed insolvency practitioners
  • fresh start
we can help

members’ voluntary liquidation (MVL)

A director/shareholder approached us to discuss putting his highly profitable business through a solvent liquidation process, known as a Members Voluntary Liquidation (MVL) to release the company’s capital (cash) at a reduced tax rate.

Within weeks of the business being placed into liquidation, we were able to distribute 80% of the capital (cash) in the business to the director, followed by a further 20% at a later date.

By placing the company into MVL, the director, as sole shareholder, was able to utilise Entrepreneurs Relief and the capital distribution was taxed at the significantly reduced rate of 10%.

members’ voluntary liquidation (MVL)
  • director/shareholder
  • liquidation
  • entrepreneurs relief
we can help

personal guarantee

We were approached by a director whose company had folded. A personal guarantee had been signed for specialist equipment for the business, and the director was concerned he may lose his house to clear the debt.

We were able to reschedule his personal guarantee to the finance company, and all his other creditors, over a period of 6 years through a DAS Debt Payment Plan.

All creditors would be paid in full over that period, assisted by interest and charges being frozen. The plan received statutory approval, and the director’s home is no longer at risk of being sold to pay his debts. He makes one affordable monthly payment to his DAS payment distributor, who deals with paying back his creditors on his behalf. At the end of the 6-year period the director will be debt free.

personal guarantee
  • company director
  • debt arrangement scheme
  • asset protection
we can help

company rescue

We were appointed to a historically successful construction company that had encountered cash flow difficulties. The company had underquoted on some complex projects that had ultimately been loss making. HMRC petitioned for the winding up of the company, and Libra were approached for advice.

Having reviewed the Company’s financials, we assisted the directors in opening discussions with HMRC, but due to the late stage of our involvement, HMRC were unwilling to accept any of the proposals being put forward. However, the directors took the decision to place the company into administration which allowed the existing profitable contracts to be saved and for trading to continue for a short period to conclude these projects and generate a pool of cash for creditors.

The assets of the business, including the order book, were ultimately purchased by a new company setup by the director, saving the jobs of all 15 staff. The new company continues to trade successfully, having budgeted, and set its pricing strategy appropriately.

company rescue
  • building company
  • arrears & cash flow problems
  • turnover £500,000
we can help

help with HMRC arrears

We were approached by a hairdresser with a successful client base; however, poor cash management had led to arrears mounting with HMRC, which the owner was concerned would lead to the demise of their business.

Libra undertook a free financial health check and considered the options available. With the assistance of the owner, we were able to produce budgets and forecasts which showed that the business was still viable.

We then presented those forecasts to HMRC and entered into negotiations to discuss possible repayment plans. An agreement was eventually reached with HMRC on an affordable repayment plan.

The business has now repaid its historic HMRC arrears and, with our assistance, has learned how to budget and manage cash flow. The business now thrives and has expanded its customer base.

help with HMRC arrears
  • hairdresser
  • HMRC arrears
  • continuity of trade
we can help

partnership

We were appointed to a husband and wife partnership, trading a 10-bedroom Highland hotel. The hotel had been for sale for 12 months and, due to difficult trading circumstances, turnover had been continually decreasing for several years.

We were appointed in the bankruptcy of a partnership and successfully traded the business while a buyer was found.

This course of action relieved the stress on the partners of the business and within 3 months we were able to find a buyer for the business, which ultimately meant there were no residual claims that fell personally onto the partners.

partnership
  • husband and wife partnership
  • bankruptcy
  • business sale
we can help

limited company

We were approached by the director of a limited company who rented and traded a public house. Cash-flow issues were causing severe financial difficulties which led to the company neglecting payments to HMRC for Corporation tax and PAYE/NICs.

The sum owed was substantial, which eventually led to HMRC commencing proceedings to raise a winding up petition against the company.

Libra undertook a financial review of the Company and it was noted that it held no tangible assets, so it was agreed that the company would enter liquidation. With the assistance of Libra, the director was able to set up a new Company, negotiate a new lease with the landlord and agree more favourable trade creditor terms. The new company now trades profitably and cash flow is no longer an issue.

limited company
  • director of limited company
  • cashflow advice
  • winding up order
we can help