In order to succeed in the business world, one needs to have sufficient amount of capital to facilitate the operations to be carried out. There are instances when the business does not have sufficient funds which lead them to seek out loans. This is generally how the business world operates in 
order for constant profits to achieved.
Business insolvency refers to a scenario where the resources in the business are not able to repay debts within a certain time. It could also mean a balance sheet insolvency where the liabilities are more than assets as per the balance sheet. When a company is in such a scenario, they face a danger of being shut down. However, this is the corporate world and most the huge corporation have attained success through trading which is why anything is possible.
When you are such a situation, the best way to handle it is through skilled specialists in the business insolvency field. Seeking advice on business insolvency from professionals can help make the transition process really smooth. Their objective is to give you the safest protection and whether it is going through the insolvency process or also avoiding insolvency it, they will ensure it is favourable to your needs.
You need to consider acquiring professional help from a qualified accountant, Citizens Advice Bureau, reputable financial adviser, solicitor or debt advice centre. They are all available to make the entire process take place smoothly with minimal complication along the way and can actually save your business from closure and resume trading.
As per the option of winding up the company, the assets are sold and disseminated to the creditors and then closed down. In this scenario, the creditors have all the power which is why it is prudent to negotiate with them instead. They can recover the debts owed to them by seeking legal action against the company by issuing a statutory demand. The creditors can also put the company into administration.
However, there are numerous options available that allow the business to remain open. They include:
Informal Agreement
By making an informal approach to the creditors one can be able to repay the debts under different footings. This is usually the case when you are experiencing a slump in the financial sector to avoid formal action. The repayment terms are usually made easier after the new interest payments are agreed upon.
Company Voluntary Agreement
This is a binding agreement between the creditors and the company experiencing financial difficulty on the payment process of the debts. In this way, the company can continue trading through the entire process and afterward.
Administration
This when an insolvency practitioner is handed over charge of the business by the owner. Here, the creditors are not able to seek legal action or begin the liquidation process without court permission. The administrator comes up with proposals like coming to an agreement with the creditors, restoring the viability of the company or pay a preferential creditor. The creditors have all the power to agree or disagree with the proposals made by the administrator.