If your company is having cash flow problems and you can't seem to pay its debts when they fall due, Your company might be insolvent. But don't worry, at Lanyana Financial Group we have a free checklist to help you decide if your company really is insolvent. It also tells you what to take into account when considering the solvency of your company. What you do need to worry about is if your company is still incurring debt while it's insolvent because that's known as insolvent trading and is against the law.
As the director of a company you are bound by certain laws that prevent insolvent trading and if you breach those laws, you could be fined up to $200,000 and imprisoned for up to 5 years, disqualified as a company director, especially if you were being dishonest and held personally liable for the unpaid debts.
So if you think your company is insolvent, don't risk finding out the hard way. Contact Lanyana Financial Group on 1800 534 534 as soon as possible and arrange a free and confidential consultation.
First published on Revive Financial.