Businesses DAS is a rescue solution for businesses run by sole traders and partnerships (as opposed to businesses run by companies). It is an alternative to insolvency.
It allows the business to pay off its debts over a reasonable period of time (up to a maximum of 5 years) without the threat of legal action from any of its ordinary creditors (any secured creditors retain all their normal rights if they are not paid).
Once the Business DAS has been approved by the creditors all interest is frozen and creditors are not allowed to add any fees, penalties or other charges.
Effective business rescue is rarely as easy as simply getting a longer period of time to pay your debts and freezing interest. That alone only buys the business time rather than addressing the underlying business issues. It normally requires the help and advice of an experienced pair of hands, real changes to the business and also sometimes the introduction of additional funding.
With the help and advice of an insolvency practitioner with business rescue experience, business owners need to be honest with themselves and identify the real reasons why their business was struggling. Once they’ve done that, they can decide what changes they are actually going to implement to rectify the problems.
If your business is struggling, don’t wait for it to be too late. Get in touch with 180 Advisory Solutions today for free, confidential advice.
Further information can also be obtained from the Government website at www.dasscotland.gov.uk/about/business-das