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Saving Costs While Facing Insolvency

When faced with insolvency or administration in business, every penny counts and is accounted for. Therefore, it’s important more than ever to reduce business costs during this process. Business Cost Consultants are one of the few companies in the UK to tackle such complex issues businesses face when going into administration.

Price hikes

When a business announces insolvency, many suppliers will either cut vital supplies or will place the insolvent company on a higher tariff. This of course is detrimental to the business in administration, adding to costs rather than lowering them.

Some suppliers demand a ransom payment before continuing contractual arrangements, again having a devastating effect on the business and the level of returns for creditors.

Strategy

Fortunately, Business Cost Consultants have expertise in tackling the complicated process surrounding utility provision and supplier negotiation. This expertise also extends to organisations with multiple sites and suppliers.

To save costs, it’s essential that an analysis of utilities takes place. This allows for a comprehensive report on your business costs, identifying the areas where costs could be saved. Once the initial reports have been digested, a strategy can be put into place as to how best to negotiate and secure competitive energy contracts.

Results

Results vary from business to business, across different utility provisions and determining on the circumstance. Business Cost Consultants are confident we can achieve cost savings for the business or administrators, based on our past experience in this field. For example, we managed to save the administrators of one hotel chain 33% on utility provision. In addition, we managed to secure a rebate for the client of a significant Five figure sum, from the date the client went into administration. You can read the full case study here.

When facing insolvency, it pays to heed the advice of experts in order to minimise business costs during this period. For more information on how we can help with this, please get in touch or call 0141 226 8525.

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