Why is early intervention so important when facing insolvency?

Early intervention is often the difference between a successful business rescue and an unavoidable liquidation. When directors act quickly, they retain more options such as negotiating time-to-pay deals with HMRC, arranging informal repayment plans with suppliers, or exploring a Company Voluntary Arrangement (CVA). Acting late often means creditors lose patience, legal action is taken, and cashflow collapses beyond recovery. Early action also helps protect directors personally. Under UK law, directors who fail to act once insolvency is foreseeable risk accusations of wrongful trading. By seeking advice early and documenting their decisions, directors demonstrate that they put creditors’ interests first. Moreover, acting before matters spiral out of control can preserve jobs, protect customer confidence, and safeguard long-term business value. In many cases, directors delay seeking advice due to fear or denial, but this only reduces their ability to negotiate favorable terms. Early intervention provides breathing space and keeps as many doors open as possible for restructuring or rescue.