Company voluntary arrangement (CVA)
A CVA can be an effective way for a company to return to profitable trading.

What is a Company voluntary arrangement (CVA)?
A CVA, or Company Voluntary Arrangement, is a legal agreement between a company and its creditors that allows the company to restructure its debts and continue trading. It is often seen as the best rescue tool for companies that are viable going forward but are burdened by historic debt.
One of the key benefits of a CVA is that it allows the directors to remain in control of the company. This means that they can continue to make decisions about how the business is run and how it will trade going forward. This can be particularly important if there are valuable assets or intellectual property that need to be protected.
However, in order for a CVA to be successful, it is important that the directors have addressed the problems that caused the debts in the first place. This might involve making changes to the way the business operates, such as reducing costs or increasing revenue. It might also involve addressing any underlying issues with management or governance.
Ultimately, a CVA can be an effective way for a company to return to profitable trading.
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Company voluntary arrangement (CVA)
Frequently Asked Questions
- Breathing space Remove pressure from HMRC tax, VAT and PAYE while the company voluntary arrangement is being prepared.
- Time to pay Quickly improve cash flow once agreed
- Lower Costs A CVA has much lower costs than administration
- Control Board and shareholders remain in control of the company
- Easy affordable payments All money owed to creditors is bundled up in one monthly payment to the supervisor
- Discrete A CVA is not publicly announced like administration and you do not have to tell you customers.
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