The Company Voluntary Arrangement (CVA) is an underused procedure. When a company is in short-term trouble but has a promising longer-term future, it can gain some breathing space by coming to an agreement with its creditors under the stewardship of an insolvency practitioner.

While suppliers are often willing to accept CVA as it promotes continued trade and a return to better relationships in the longer term, banks can be less amenable and will often give notice to the customer to re-finance and re-bank. Failure to comply will cause the CVA to fail and administration is the most likely outcome.

Associate Members of R3, the recognised professional body for the insolvency sector, Now Financial Partners works with both the customer and the bank to replace these facilities and enable the CVA to have a chance of success.

This process is highlighted in the following case study:

An engineering business reached an agreement with its suppliers and HMRC but its bankers refused to co-operate and gave the business 21 days to pay back the money it owed. The customer sourced a new invoice finance provider but failed to find anyone willing to refinance the assets so the deal lay in ruins. The invoice financiers contacted Now Financial Partners to organise a re-financing of the assets. This was achieved within the time frame, the existing bank was repaid, a new bank appointed, and a further £50,000 raised to act as deposit for new machines agreed to be supplied within the terms of the CVA.

To find out more about how we can help your business manage a successful CVA, call us today on 0870 950 3828 or email info@nowfinancialpartners.co.uk