If you feel that your company is sailing into troubled waters, flirting dangerously with bankruptcy, I may have a lifeline for you: the famous business composition proposal.
Yes, yes, you read that right.
Before I tell you it's all over, that you'll have to close up store, let me tell you about this truly game-changing option. ☝️
A proposal is like a secret agreement between you, your creditors and a licensed insolvency trustee.
Its beauty?
It allows you to keep your business running while putting a big stop to creditor harassment.
Imagine, you could catch your breath, manage your debts without declaring bankruptcy.
The dream, right? ✨
So, yes, finding money when you're in the red is like looking for a needle in a haystack.
But if what you really need is just a little more time, then the concordat proposal could well be your best ally.
In the following lines, I'm going to guide you through the process, show you that it can be done, and above all, explain why and how it could be the saving grace for your business.
What is a company proposal?
So, are you ready to delve deeper into the mysterious world of business proposals?
It's like a lifeline when you think your company ship is about to sink.
Basically, it's an agreement you negotiate with your creditors to say, "Hey, I'm in a bad spot, but I want to get out of it without leaving you high and dry."
The great thing about the proposal is that it allows you to continue running your business.
Yes, you heard me right.
No need to go out of business. 🔑
You can keep your employees, continue to sell your products or services, all while reorganizing your debts.
Isn't that magic?
The proposal is a bit like a deal.
With the help of a licensed insolvency trustee, you propose a new payment plan to your creditors.
This plan is tailor-made, based on what your company can actually afford to pay.
And the best part?
Creditors stop harassing you.
No more incessant phone calls, no more threatening letters. At last you can breathe. 🙌
Eligibility criteria
Now let's get serious.
Who can embark on the adventure of a concordat proposal?
First thing to know: it's not for everyone.
Your company must be in a situation where it can no longer meet its financial obligations.
Clearly, if you're drowning in debt and paying your creditors on time is a miracle, you're on the right track.
The main criterion is to have more than 1,000 $ in debt. 💸
But be careful, it's not just about having debts.
You really must be unable to pay for them as planned.
That's where the licensed insolvency trustee comes in.
This professional will examine your situation from every angle to see if a proposal is the best route for you and your company.
So before you throw in the towel and think all is lost, take the time to check whether you qualify for this option.
Because, believe me, if you're eligible, it can really be a game-changer for you and your business.
Not bad, eh?
The stages in a company's proposal for composition
So, are you considering a composition proposal for your company?
It's a courageous and judicious move that can really make a difference.
But for success to come, there's a long way to go.
Here's an outline of the process.
1️⃣ Consultation with a licensed insolvency trustee
Think of it as a doctor's appointment, but for your company's financial health.
The trustee is your specialist, the one who will diagnose your situation and tell you whether the composition proposal is the right solution.
The objective here is to assess your company's eligibility and weigh up the benefits of such an approach.
A bit like drawing up a customized treatment plan to get your business back on its feet.
2️⃣ Filing of notice of intent
This is the moment when you officially announce that you're entering the world of the concordat proposal.
It is a legal protection against lawsuits and other legal actions that your creditors may take.
Basically, it's like pressing the pause button to give your company the space it needs to breathe and restructure without external pressure.
3️⃣ Proposal preparation and submission
Now the real work begins.
With the help of your trustee, you'll draw up your proposal.
This is a delicate stage when you propose a repayment plan adapted to your real ability to pay.
In this phase, the syndic is like your chief negotiator. He'll make sure the agreement is fair for everyone.
4️⃣ Suspension of legal proceedings
Once you've filed your notice of intent, an invisible shield protects your business.
Current or potential legal proceedings are suspended.
This means that creditors have to put aside their legal weapons while you work on a recovery plan.
It's a step that allows everyone to take a breather and focus on a constructive solution.
5️⃣ Proposal presentation and approval
The moment of truth arrives with the creditors' meeting.
Your trustee presents the proposal, a bit like a lawyer defending his client in court.
The creditors then vote for or against.
The objective?
Get the green light to go ahead with the proposed plan.
6️⃣ Repayment under the terms of the proposal
Victory!
Your proposal is accepted.
Now you must scrupulously respect the terms of the agreement.
It's an adjusted repayment period, but it's also the start of a new era for your company.
You repay according to your ability, without suffocating under the weight of your debts.
That's the way to a successful concordat proposal.
With a little preparation, a good trustee on your side and a dash of determination, you can really breathe new life into your business.
Is this the right solution for your company?
The decision to adopt a proposal should not be taken lightly.
There are several key factors to consider when deciding whether this is the right option for your business.
✔️ First, carefully assess your ability to pay.
This involves an in-depth analysis of your cash flow and your ability to meet the financial commitments redefined in the composition proposal.
It's crucial to ensure that the proposed payments are realistic and viable for your business in the long term.
✔️ Secondly, the value of your assets must be taken into account.
An accurate assessment of your assets will help determine the feasibility of a proposal.
Assets can provide additional security for your creditors and positively influence the outcome of negotiations.
✔️ Finally, your financial history plays a major role in this decision.
Your company's payment history, past financial management and economic performance will be closely examined by creditors when evaluating the proposal.
It is imperative to consult a licensed insolvency trustee such as N. Séguin Syndic before beginning the process.
This preliminary consultation will enable you to explore all available options and benefit from sound advice to make an informed decision.
The syndic will also be able to guide you through the legal and financial implications of each option, ensuring that the chosen strategy is perfectly aligned with your company's long-term interests and objectives.
Contact us!
Navigating financial challenges can be complex, but you don't have to do it alone.
At N. Séguin SyndicOur team of experts is there to guide you every step of the way, offering customized solutions and unrivalled expertise.
If you are considering a proposal or have any questions about the financial options available to your company, please contact Contact us. 📱
Together, let's explore solutions to secure your company's future and start afresh on a solid footing.
Your success is our priority.
