The current economic challenges in the UK, including high inflation, supply chain issues, and reduced consumer spending, may make business owners concerned about their financial situations. However, the latest official insolvency statistics indicate that bankruptcies in 2022 were the lowest since 1982. Despite this, business owners need to take professional advice and carefully consider their options if they are facing financial difficulties. Seeking professional help is vital, particularly for those considering bankruptcy, as it can have severe effects on personal finances and businesses.
For those worrying about cash flow issues, it’s essential to contact their financing provider to explore the possible sources of finance, including working capital loans, invoice finance, and an extended overdraft.
An individual subject to bankruptcy will face restrictions, including being banned from acting as a company director. Personal bankruptcy can also result in the liquidation of the company if the sole director is undischarged bankrupt. But for sole traders, bankruptcy does not prevent them from continuing their trade.
Business owners facing the challenge of obtaining a bank account can apply for a basic bank account even if they have an adverse credit history such as insolvency measures in place. Large banks in the UK, including Barclays, Lloyds, HSBC, NatWest, and Santander, offer these fee-free basic bank accounts.