The Top Causes of Business Insolvency

The following is a list of the top causes of business insolvency, but in order for you to really understand these causes, first we need an understanding of what business insolvency means.

When a business is said to be insolvent, it means that it no longer has the capacity to repay its debts to its creditors in due time.

Business insolvency can result in receivership (a receiver is appointed by a courts to act as a temporary director of an insolvent company to try rescue it from its debts), liquidation (the only option left if the company has no way to pay its debts but to liquidate itself), or total bankruptcy.

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