How to Avoid risk of Insolvency

How Can I Reduce The Risks Of Insolvency

Answer (1)

Team Legistify

  • Sector-1, Noida

You can reduce the risk of becoming insolvent by ensuring that your business is soundly financed and keeping good control of your cash flow. These are issues you should discuss with your advisors and your bank. Building a good relationship with creditors; for example, your bank can help to reduce the risk that they will instigate proceedings against you if your business does run into financial difficulties. The bank (and other creditors) can be more supportive if you keep them informed and have a good previous record of prompt payment.

Answered on 28 Sep 2018


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