You may come to the conclusion that you simply want to close your business and move on to other opportunities. If this is the case, then you will need to consider liquidation.

Liquidation is simply the term used to describe the process of closing a company down. The company's trading is stopped and its assets are sold and turned into cash or "liquidated". There are different types of liquidation depending on whether the company to be closed is solvent or insolvent and who instigates the closure.

The main business closure solutions are as follows:

• Members Voluntary Liquidation
• Creditors Voluntary Liquidation
• Compulsory Liquidation / Winding Up

As a company director you have a duty to make sure that your company is not trading while it is insolvent. If you are aware your business is insolvent and you continue to trade, you could be liable for debts that it incurs.

If you want to close your business, you should take advice as soon as possible.

If your company is struggling financially you need to act now to decide what action to take. Delayed action could cost you your business. The different solutions available are explained in detail in this area of Beat My Debt.

The best way to understand which solution is right for your company is to speak to an expert.

The Beat My Debt forum is great place to start, giving online access to industry experts.

Alternatively you can call Beat My Debt free on 0800 077 6180 and speak directly to one of our expert advisors who will give free, independent and confidential advice.