If a company reaches the point where it genuinely cannot pay its debts as they fall due, there is a structured set of options under UK insolvency law. Knowing the broad landscape helps you have a sensible conversation with a professional. This is general information only; the right route depends entirely on your circumstances and must be advised by a licensed insolvency practitioner.
Routes you may hear about
- Company Voluntary Arrangement: a formal agreement to pay creditors over time while the company keeps trading.
- Administration: a process to protect a company while a rescue or better outcome is pursued.
- Creditors' Voluntary Liquidation: directors choosing to wind the company up when rescue is not viable.
- Informal arrangements: negotiated payment plans agreed directly with creditors, outside any formal process.
The common thread
The earlier you take advice, the more of these options remain genuinely available. Rescue routes in particular depend on acting while the company still has something to save. A licensed insolvency practitioner can explain which paths fit and what each means for directors and creditors.
Because a Credicorp Flex or Credicorp Slice loan is made to the company, it forms part of this picture. Keep us informed if a formal process is being considered, and tell your adviser about the facility so it is properly accounted for in any plan.
See also: What is insolvency?, Where can my company get free, independent business debt advice?, What not to do when your company cannot pay.