Opt for the business proposal

A business proposal allows a company with a liquidity problem (cash flow) to obtain a temporary respite from its creditors in order to negotiate a payment agreement that will be acceptable to the creditors and the company.

In person, by phone or video conference

Business proposal

What is a business proposal?

The business proposal is preferred when a company is facing cash flow problems. This debt solution makes it possible to submit a proposal to the company’s creditors in order to negotiate a repayment term accepted by both parties.

This solution reduces the company’s level of debt and eases the pressure on cash flow while ensuring the company’s continued operation. A business proposal can be filed to avoid commercial bankruptcy.

According to the law, this negotiated agreement with creditors must be made through a licensed insolvency trustee. The trustee manages negotiations with creditors and ensures an agreement that respects the company’s ability to pay. The trustee is also responsible for preparing the proposal, collecting payments agreed upon in the proposal, and distributing dividends to creditors.

The business proposal often requires a notice of intention to be filed beforehand. This notice is a prelude to the concordat proposal and allows for the existing debt to be deferred for up to six months, providing time for the entrepreneur and professionals involved to negotiate an agreement that is acceptable to creditors and viable for the compa

The notice mainly consists of a list of the company’s creditors and can be quickly implemented by the insolvency trustee when the situation is critical.

Our Process

The business proposal is a complex process that must be filed by a licensed insolvency trustee. Get help from the M. Roy & Associés team.

We establish a clear and structured plan

We take care of the consumer proposal

We help you restore your credit score

The business proposal: Is it right for me? 

Is your company experiencing financial difficulties that can be targeted and corrected? Do you still have the will to continue operations despite these difficulties? Then the answer is yes!

Under the Bankruptcy and Insolvency Act, in order for the proposal to be viable, the company must be able to demonstrate its ability to pay its fixed costs and the agreed-upon amount in the proposal in the future.

Here are the profiles of people who most often file a Notice of Intention and a business Proposal as a solution to their company’s debt with M. Roy & Associés:

  • They own a company that is still operating but has temporary financial difficulties due to an unforeseen event, such as the illness of a key executive or employee, theft committed by an employee of the company, an important contract that turns out to be a loss, or the loss of a major client representing more than 50% of the revenue;
  • They have a dispute with tax authorities that culminates in a bank account seizure or third-party seizure of accounts receivable;
  • They have a dispute with an essential client or supplier that compromises the company’s ability to continue operations;
  • The company has been losing money for years due to a change in the industry, and a complete restructuring of the sectors in which it operates must be carried out;
  • They want to avoid bankruptcy in order to not lose the company’s customer base, current contracts, and employees;

To find out if a proposal is the best solution for your company’s financial problems, please call 1-877-123-4567 or complete the online form here to obtain a free and confidential meeting with a member of our team.

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