Company Voluntary Arrangement
A Company Voluntary Arrangement (CVA) is an arrangement between your Company and its creditors where the Company pays a monthly payment based on what its cash flow forecasts say it can afford. What you are effectively telling creditors is that the Company cannot afford to pay them on time and in full but is willing to pay all it can afford.
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CVA has the following benefits:
As Company Voluntary Arrangement payments are based on what the Company can afford according to its cash flow forecasts rather than the debt owed, many Company Voluntary Arrangements result in the Company paying than the entire debt it owes. However, whatever is offered to creditors it must be evidenced and be the Company’s best offer.
How a Company Voluntary Arrangement can Work for your Company
A Company Voluntary Arrangement is flexible, giving the Company the opportunity to trade out of its current financial difficulties. The terms of the CVA depend on the specific circumstances your Company finds itself in and what its creditors have agreed to. A CVA can involve monthly payments based on cash flow, delayed or reduced payments of debt, capital restructuring or the sale of some of the Company’s unnecessary assets.
In most Company Voluntary Arrangements, your secured creditors such as your factoring company or bank will be specifically excluded from the Company Voluntary Arrangement because they already have security. By excluding these creditors you are able to continue to operate your facilities with them, thus protecting your day-to-day funding.
Because a Company Voluntary Arrangement allows the Limited Company to continue in its existing legal form it allows existing contracts and accreditations to be maintained. This is particularly important if the Company has long-term contracts that were hard to obtain and which would terminate if the Company was placed into Liquidation or Administration.
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Our Service
When you get in touch with us, you will speak directly to a licensed Insolvency Practitioner from the outset. We will take the time to understand your Company’s financial position, what your future intentions are for the business and ultimately what outcome you are hoping for.
If you want to know more about entering into a Company Voluntary Arrangement, we can provide you with guidance on how to get started and can advise whether a Company Voluntary Arrangement is likely to work for your business.
Client Testimonials
My business was in trouble and I really did not know what to do. Company Advice Centre explained all of the options available to me in a manner that was easy to understand. I was able to decide on the solution that suited me and my business without being put under any pressure and was supported throughout the whole process.
When I called Company Advice Centre my business needed urgent help. I had received a winding up petition and a threat of bailiff action. When I explained the situation, one of the Insolvency Practitioners at Company Advice Centre came out to see me in person the next day. Because of this fast action I was able to place the company into Administration and save the business.
The team at Company Advice Centre really took the time to understand my situation and were always quick to help when I had any questions. It wasn’t an easy decision to close my business but having the support Company Advice Centre provided really helped me to move on.