Your business is insolvent if it’s unable to pay its non-current debts that are due for payment. It represents an endemic shortage of working capital rather than temporary illiquidity. This is the ‘cash flow test’ of insolvency.
Insolvency
Insolvency
Your business is insolvent if it’s unable to pay its non-current debts that are due for payment. It represents an endemic shortage of working capital rather than temporary illiquidity. This is the ‘cash flow test’ of insolvency.