A company voluntary arrangement, or CVA, is one of the formal rescue routes for a company that is fundamentally viable but weighed down by debt it cannot service on current terms.
What it does
A CVA is a legally binding agreement between the company and its creditors to pay back some or all of what is owed over an agreed period, usually while the company keeps trading. It is proposed with the help of a licensed insolvency practitioner.
Who it suits
It suits a business with a viable core that needs time and a restructured debt load, not one with no realistic future. Creditors have to approve it, so the proposal must be credible.
Where our loan fits
Our loan would be one of the company debts dealt with under the arrangement. Because there is no personal guarantee, the process concerns the company. Talking to us early may open a private arrangement that avoids a formal CVA altogether.
A licensed insolvency practitioner can tell you whether a CVA fits your company.
We lend only to UK limited companies and LLPs, and the loan is to the company with no director personal guarantee. As business finance outside the consumer-credit regime, it is not covered by the Financial Ombudsman Service or FSCS.
See also: Understanding business insolvency options, Options before a cashflow problem escalates to insolvency, What happens to my loan if the company becomes insolvent?.