Cash flow problems can be a serious concern for any company, especially if they put your business at risk of being unable to pay its debts. If you notice these problems early, you may be able to implement new strategies to resolve these challenges quickly and avoid insolvency. If these problems cannot be resolved, and your business is unable to pay its debts when they are due, the company will be considered insolvent.
At this stage, the available options will become severely limited. Whilst there are several company rescue solutions that might help you to recover your business during the early stages of financial difficulty, there are some circumstances in which the best option may be to enter Voluntary Liquidation.