Pre-Pack Finance
When directors are faced with insolvency, but still want to rescue the business, they may look to purchase all or part of the business.
This can be difficult, especially when the business has financial difficulties due to business debt. The options vary depending on the directors individual circumstances and type of business but it is possible to build up finance to purchase the business assets.
Financing of this type is usually used as a part of the pre-pack administration process. Funding is typically arranged in the form of asset finance on the physical assets of the company such as equipment and in some cases factoring to take over the company’s book debts.
In some Pre Pack Administrations the factoring company is engaged prior to the process. They take control of the book debts and set up arrangements for the purchasers of the business assets.
For more information regarding Pre-Pack Administration, company administration and how Business Rescue Service can help you, please call 0845 468 2395 or visit our contact page for further details.
