Author Archive | jesolvency

Insolvent Trading, solvency

Insolvent Trading

It is not uncommon for businesses to face financial pressures. Businesses in this position may need to confront concerns about solvency. Insolvency is the position of being unable to pay debts as and when they become due and payable. This requires a cash flow test as opposed to a balance sheet test. The balance sheet […]

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What is Corporate Insolvency?

What is Corporate Insolvency?

Corporate insolvency is where a company is unable to pay its debts when they fall due for payment. A company is solvent if it can pay its debts when they fall due and insolvent if it can’t. The financial state of the company is important because it determines what kind of liquidation the company will […]

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