A CVA or Company Voluntary Arrangement is a legally binding, government-approved agreement between an insolvent company and it's creditors. It can prevent the company from going bust; by arranging to pay back some of its debts through its potential future profits. It helps no one to see the company go under, the debtors and the creditors all lose out. A Company Voluntary Arrangement can ensure that creditors receive some of the money that is owed and keeps the business going, keeping employees in their jobs, and in the long term preventing the impact of unemployment on their families and the local economy. If the company can be profitable in the future, a CVA is the sensible option.

A CVA is arranged between the company's directors and their experienced and qualified financial advisors. Just like an IVA or Individual Voluntary Arrangement, most CVA plans take place over a five-year period, with an amount of your profits being split between your creditors. Some believe that huge amounts of your income will be taken from you, but this simply isn't true. The amount taken will be based upon your company's individual circumstances.

A CVA can help maintain good will within your business community and sector, and prevent you from damaging important relationships. Your most aggressive creditors will not be able to take you to court or send bailiffs after the CVA is in place. Speak to a qualified advisor about all of the positive benefits of a CVA for your company. They can help you draft and prepare an effective CVA plan proposal to put to your creditors now, rather than waiting until the pressures on your business lead you down a path from which you cannot ever return.

<< Back