How much does it cost to set up a CVA?

The cost of a CVA varies depending on the size and complexity of the business, but it typically ranges from £20,000 to £50,000. This cost covers the insolvency practitioner’s fees for preparing the proposal, filing with the court, organising the creditor vote, and supervising the arrangement over its duration. Larger companies with multiple creditors, property leases, or international operations may face higher costs due to the complexity of negotiations and administration. The fees are usually paid from the company’s cashflow as part of the arrangement, meaning directors do not need to fund them personally. While the upfront cost can seem high, it is often significantly lower than the cost of administration or liquidation, both of which involve more intensive procedures. The key consideration is whether the CVA will deliver a viable route to recovery and creditor repayment. If successful, the cost is outweighed by the survival of the business and the preservation of jobs.