Other insolvency indicators to look out for:
Liquidity ratios below 1
Overdue commonwealth and state taxes
Poor relationship with Bank, including inability to borrow further funds
No access to alternative finance
Inability to raise further equity capital
Suppliers placing company on COD, or otherwise demanding special payments before resuming supply
Creditors paid outside trading terms
Issuing post-dated cheques
Special arrangements with selected creditors
Solicitors letters, summonses, judgements, or warrants issued against the company
Payments to creditors of rounded sums which are not reconcilable to specific invoices
Inability to produce timely and accurate financial information to display the company’s trading performance and financial position and make reliable forecasts.
Non payment of statutory superannuation contributions.