Our turnaround and recovery specialists can help you to minimise the effects of a customer becoming insolvent and offer a range of services should you become a creditor.
A customer in severe financial difficulty could seriously harm your business. However, in addition to carrying out credit checks on potential customers and adhering to a clear credit control procedure, businesses can take a number of other steps to minimise the potential effects of the insolvency of a customer.
Retention of title
A retention of title clause in your terms of trading may enable you to repossess your goods in the event of non-payment by your customer. You must be able to identify your goods, which the customer must not have integrated as part of his own product. For example, a cloth supplier may be able to repossess his unused cloth - but not if it has been made it up into finished garments.
Credit insurance
It may be possible to obtain credit insurance against bad debts, which will enable you to recover a percentage of each unpaid invoice in the event of your customer's insolvency. The availability and extent of cover may be dependent upon the nature of your products or services and the type of customers you trade with.
Guarantees
In some circumstances, you may be able to obtain a personal guarantee from a director of a major customer, or from a parent or other group company.
Services for creditors
When a customer becomes insolvent as a creditor of the business, you need to be prepared for the worst. Our turnaround and recovery specialists can help you with:
Advice on the practical aspects of supplying and recovering goods and alternative methods of recovery.
Advice on all of the options available to you and helping you with the practicalities.
Represent you at creditors’ meetings and producing a report, free of charge, setting out the prospects of recovering your debt.
The next step
If you think a customer may be at risk of insolvency and need advice as a creditor, please contact one of our turnaround and recovery specialists at your nearest location, or complete the contact form.
Andrew Andronikou and Peter Kubik were appointed as Joint Administrators to Convers Sport Initiative plc (CSI).
HMRC was responsible for 58% of all the petitions submitted over the last year to wind-up companies compared to just 43% in the previous year, reveals research by UHY Hacker Young. 
Our Joint Administrators Andrew Andronikou, Peter Kubik and Michael Kiely have issued their Six Month Report to Creditors, in accordance with R2.47 Insolvency Rules 1986.
In accordance with Paragraph 51 of Schedule B1 of the Insolvency Act 1986, a creditors’ meeting has been convened at Portsmouth City Football Club on 6th May at 11am. The meeting is restricted to creditors and their representatives only.
Our Manchester office has been appointed receivers of Brookside Close, the legendary Liverpool cud-de-sac where the popular Channel 4 soap opera Brookside was filmed until 2003.
Andrew Andronikou and Peter Kubik, Partners at our London office Turnaround and Recovery Department have been appointed administrators of the assets of Butler and Tanner Printers Ltd.
Select Retail, the national women’s fashion retailer, was placed into Administration on Friday 22nd February 2008, against a backdrop of its deteriorating trading performance in the first quarter of 2008. Our Turnaround and Recovery specialists moved quickly to evaluate the business and negotiate the sale of approximately half of the 250 retail units to a management buy-out team. 
