Can the Company pay its accounts as and when they fall due? (Cashflow Test)

A director has a legal requirement to understand this issue.

If he or she believes that the company has insufficient cash to pay its liabilities on time then they must take advice/action.

If your trade creditors sell to you on say 30 days terms and you regularly pay on 90+ days, then the company could be insolvent. Its that simple.

Contact Emerald and we can help you deal with this.