When a business faces financial difficulties
A business often starts to face financial difficulties gradually. For example, your cash flow can suffer from reduced orders or changes in the competitive environment.
If your business faces payment difficulties, it is worth knowing in advance that there are defined legal procedures precisely for such situations. Your options are company restructuring, liquidation, and a private person’s debt restructuring.
You should seek help sooner rather than later. For example, you can begin restructuring your business when your insolvency is still only a possibility. You do not have to wait until your business is insolvent.
Private person’s debt restructuring
A private person’s debt restructuring is intended as a solution for a private household’s problems, but a business owner can also apply for it for his or her business debts.
You can apply for a private person’s debt restructuring as a business owner if:
- your business operations are small, you are a sole trader and you do not need business restructuring to balance your finances
- your business is your main source of income
- your business has stopped trading.