Pre-insolvency advisory provides confidential guidance for directors who recognise early warning signs of financial difficulty. This service helps you understand your options, director responsibilities, and potential outcomes before committing to any formal procedure. Early advice often means more choices and better outcomes for all stakeholders.
Pre-insolvency advisory is confidential strategic guidance provided before any formal insolvency appointment. A licensed Insolvency Practitioner reviews your company's financial position, assesses available options (both formal and informal), and provides clear advice on the most appropriate path forward.
This service focuses on understanding your full range of options when you still have time to consider them carefully. Many directors who seek early advice find solutions that avoid formal insolvency altogether.
Consider speaking to an Insolvency Practitioner if you're experiencing any of these situations:
Strategic planning stage
Early warning signs
Director responsibility concerns
If you require immediate rescue advice as financial distress or operational challenges are advanced, see our company rescue and turnaround service.
Meet with an Insolvency Practitioner to discuss your situation. This conversation is completely confidential and without obligation. You'll explain your concerns, current financial position, and what you're hoping to achieve.
The Insolvency Practitioner reviews your company's financial position in detail, including cash flow forecasts, creditor positions, assets, liabilities, and any immediate pressures. This assessment identifies exactly what options are realistically available.
You'll receive clear advice on every available route, from informal arrangements with creditors through to formal insolvency procedures. Each option is explained with its implications for directors, employees, creditors, and the business itself.
The Insolvency Practitioner provides clear recommendations based on your specific circumstances, including realistic timelines, likely outcomes, and next steps. You'll understand your director duties and what actions you need to take.
If you decide to proceed with any recommended strategy, your Insolvency Practitioner can provide ongoing support. If formal insolvency becomes necessary, you're already working with someone who understands your situation thoroughly.
Pre-insolvency advice considers both informal and formal solutions:
Informal solutions: Negotiated creditor arrangements, operational restructuring, asset disposals, refinancing opportunities, cost reduction strategies, or management changes might resolve difficulties without formal procedures.
Formal procedures: If informal solutions aren't viable, formal options include Company Voluntary Arrangement (CVA), Administration, or in some cases liquidation (CVL or MVL depending on solvency). The right choice depends entirely on your specific circumstances.
The key difference with pre-insolvency advice is that all options remain on the table. You're not committed to any particular route until you've understood the full picture.
Directors have specific legal responsibilities when a company faces financial difficulty. If there's no reasonable prospect of avoiding insolvent liquidation, directors must prioritise creditor interests over shareholders. Continuing to trade in these circumstances could constitute wrongful trading, creating potential personal liability.
Pre-insolvency advice helps you understand exactly where your company stands and what your duties are in that situation. Professional guidance demonstrates you've acted responsibly and sought appropriate advice when making difficult decisions.
This doesn't mean every struggling company must immediately enter insolvency. It means directors need to understand their position and make informed decisions based on professional advice.
More options available Early intervention provides time to explore alternatives. Once a company reaches crisis point, options narrow significantly and decisions must be made under extreme pressure.
Better outcomes for stakeholders Early planning often means better returns for creditors, more potential to save jobs, and reduced stress for directors. Rushed decisions made in crisis rarely produce optimal outcomes.
Protected decision-making Professional advice provides a clear record that you've acted responsibly, sought expert guidance, and made informed decisions in the interests of creditors. This protection becomes important if your conduct is later scrutinised.
Avoid formal insolvency Many companies that seek early advice implement changes that stabilise the business without requiring formal insolvency procedures. Early advice doesn't guarantee this outcome, but it certainly improves the chances.
Reduced personal stress Understanding your options and having a clear plan reduces the anxiety that comes with financial uncertainty. You'll know what you're facing and what steps you need to take.
All consultations with Insolvency Practitioners are completely confidential. Your initial discussion doesn't commit you to any course of action and doesn't need to be disclosed to creditors, banks, or other stakeholders unless you decide to proceed with formal procedures.
Many directors contact Insolvency Practitioners simply to understand their position and options, then implement informal solutions without any public disclosure that advice was sought.
If you're concerned about your company's financial position or want to understand your options before difficulties escalate, request a confidential consultation with a licensed Insolvency Practitioner in your area.
The initial conversation will help you understand where you stand and what realistic options exist for your specific situation. There's no obligation to proceed with any recommendation, but you'll have the clarity needed to make informed decisions.
Connecting UK businesses and professional advisers with experienced, licensed Insolvency Practitioners across England and Wales.
Insolvency Practitioners is a trading name of BTG Begbies Traynor (Central) LLP a limited liability partnership registered in England and Wales No. OC306540. The firm is authorised by the FCA to undertake debt counselling and debt adjusting and its reference number is 660455. Copyright 2026 Insolvency Practitioners, all rights reserved.