Ask yourself: ‘is there sufficient cash available to pay debts in full as and when they fall due?’ If the answer is no, then your company may be insolvent. Symptoms of insolvency can include being unable to afford to pay all creditors as per their trading terms, entering into instalment repayment agreements.

If your company is insolvent, it is important to prevent any further activity that would allow it to incur further debt. You will then need to determine the most appropriate course of action, like a suitable insolvency option like voluntary administration or company liquidation. However, you may also be able to restructure, refinance or obtain equity funding to recapitalize your company.