A CVA is a legally binding agreement between a company and all or certain of its preferential and unsecured creditors where the company makes a formal offer towards repayment of its liabilities.
The totally flexible arrangement means that the CVA doesn’t have to provide a full repayment of all liabilities and just as much as it can afford as if the company was to move into liquidation.
No two companies are identical and a CVA is closely tailored to suit a person’s needs and requirements. Younger companies who are facing trading difficulties since their start up, but do have a profitable business can apply for a CVA to help them deal with credit pressure. Companies who have also experienced one off problems like bad debts and have seriously affected their financial position, but do have a profitable business could also benefit from a CVA.
Companies that are looking into the restructure of their company and are introducing redundancy measures to return to profitability however don’t have the cash required to undertake the process can also benefit as well as companies that wish to wind down trading and consult their creditors as a result of asset realisations avoiding the process of liquidation could also apply for a CVA.
For more information about the cva process then why not speak to Real Business Recovery today a team expert in helping businesses get out of debt fast. The team are dedicated and willing to help you make the most out of getting your business bankruptcy resolved.
