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{{a|glossary|}}A [[credit officer]]’s blackest fear. | {{a|glossary|}}A [[credit officer]]’s blackest fear. | ||
This could mean many things including [[ | This could mean many things including [[balance sheet insolvency]] and [[cashflow insolvency]]. | ||
Broadly, it means you do not have sufficient assets to meet your liabilities, and you are no longer a viable business. Your [[creditor]]s are entitled to apply to the court for the appointment of a [[receiver]] who will liquidate your assets, determine your liabilities, and distribute the proceeds of that liquidation to your creditors pro rata. After that, the game is up and you no longer exist. | Broadly, it means you do not have sufficient assets to meet your liabilities, and you are no longer a viable business. Your [[creditor]]s are entitled to apply to the court for the appointment of a [[receiver]] who will liquidate your assets, determine your liabilities, and distribute the proceeds of that liquidation to your creditors pro rata. After that, the game is up and you no longer exist. | ||