Business Failing
posted in Community by
harrydavidson701l3
I'm a director of a struggling, small, ltd construction company, est. 5 years, vat registered and currently owing around 45k in bounce back loans.
Due to rising costs, endless delays procuring materials and most of my workforce and their families catching Covid. We are really struggling. We are getting undercut to the point where if I dropped prices any lower I wouldn't be able to pay my rent. (Yes, I'm generation rent) live in SE England. Wife works for NHS part time around children and our bills are the best part of 2.5k per month. We have very little personal debt and before the pandemic were doing well saving for a mortgage. That's another story though.
Back to the business. Its a noose around my kneck at the moment. I have dropped my salary to 30k. Sold our rubbish van, got rid of our storage unit and cut costs we spent on advertising in order to be able to lower prices and compete. Its not worked. I'm now getting less enquiries and we are still too expensive. I have asked my accountant for advice (I have stretched the repayment for bbl to 10 years) and he hasn't suggested anything worthy so thought I would try here. I have been offered work for another business on a self employed basis but my accountant says I will still be vat registered personally and I will still have to pay the BBL from my own earnings into my business account which basically prices me out of the other work I have been offered due to the amount I will have to charge for my services.
I have no idea what to do, even insolvency sounds too expensive for me. Further covid restrictions are obviously coming and I've no idea how the business or I survive without severely impacting my personal finances, any chance of getting on the property ladder and to be honest, my mental health. I feel like I'm stuck between a rock and a hard place and maybe I'm just trying to prevent something that is unpreventable and some kind of bankruptcy beckons.
Any advice is greatly appreciated.
2 years ago
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