Avoid filing for bankruptcy in 9 steps

How to avoid filing of Bankruptcy

How to avoid filing of Bankruptcy

The bankruptcy filing constitutes an official declaration made by the entrepreneur to the Commercial Court in order to ascertain the state of cessation of payment of his company. This process has far-reaching consequences as it translates into liquidation and receivership. This is why the company must put in place appropriate strategies to avoid a stalemate. The details.

Monitor your accounting

Monitor your accounting

In the absence of good management of its accounts, the company risks calling into question the stability of its economic and financial situation. The professional must put his hands to the pulp and proceed to the regular evaluation of his financial statement by clearly determining the amounts to be paid (supplier payments, staff salaries.) and receivable (customer payments). In this way, it becomes easier to determine the financial condition of the company and find the appropriate solutions in case the evaluation shows negative results.

Limit general expenses

Limit general expenses

To avoid negative results in the evaluation, it is necessary to limit or even stop spending, especially expenses considered “useless”. The company must take stock of its main needs in order to avoid wasting money. For this, she must know the difference between what is essential or not.

Decrease spending

Decrease spending

To ensure its smooth operation, the company requires a specific budget. The related amount may be subject to restrictions in order to limit the risk of financial imbalance. These expenses can concern the supplies, the maintenance contracts, the telephone.

Get rid of too much or unnecessary equipment

Get rid of too much or unnecessary equipment

Some of the company’s production facilities are very maintenance-intensive and consume a lot of energy. Others fail to produce the minimum required by the company. They can generate losses that risk compromising the company’s performance. It’s better to get rid of it.

 

Review long-term contracts

Review long-term contracts

Some contracts (real estate leasing, insurance.) only generate losses for the company because of the costs and conditions that they generate. They must be revised to fit the needs of the business.

Ensure control of your cash flow

Ensure control of your cash flow

Cash flow must be monitored regularly and rigorously. The contractor must know the details of the allocation of expenses incurred within his company. This avoids the risk of misuse of corporate assets.

Do not neglect billing deadlines

Do not neglect billing deadlines

The respect of billing payment deadlines is a crucial element to guarantee the development of the company. In the event that the customer does not respect the deadline stated on the contract, do not hesitate to impose penalties for late payment.

Regularly evaluate staff

Regularly evaluate staff

The efforts made by the staff undoubtedly contribute to the development of the company. This implies that it must ensure a certain performance to limit the risks of filing for bankruptcy. Thus, it is necessary to optimize the best performing positions and eliminate unnecessary and unprofitable posts.

Develop business activities

Develop business activities

The strategies adopted by the company must not be limited to guaranteeing its survival. They must allow it to develop and secure its place in the market.