If business debt becomes a problem for your company it can be very appealing to simply decide to dissolve your limited company and start up again under another name. In many cases, the majority of people won’t know any different and a surprisingly large amount of money can be written off. Brilliant, right?
Well, whilst on the surface letting a limited company fold with a view to starting a new one in another name might seem like a good idea, it can bring all manner of problems with it. For example, any local businesses who you trade with are likely to be amongst the people to whom you own money. Should you let the company fold whilst you still owe them money, whether you are operating under a new name or not, they will be very wary about doing business with you again.
Also, whilst such information may not be in the public domain, if your business is in a small town, word will travel fast and the very people whose business you rely on may see you in a negative light should rumours spread.
Business debt will have many solutions. For some, dissolving the company will be the best course of action, but for many, especially those who see problems early and are proactive about utilising business debt analysis, there may be many other options that are far more beneficial. Some people see debt as having only one solution, but in reality the best course of action will vary drastically from one company to the next.
Understanding the best option for you is very important if you want the best possible outcome, and all it takes is to swallow any pride and look into business debt analysis. You may well be surprised at just how many options you have.