Advice for Businesses in the UK struggling to pay Dividends

At Boardroom Punks, we take an innovative new approach to helping businesses. We aim to work on every financial solution possible before the insolvency practitioners are called in. If you are seeking advice to help you navigate your issues with shareholders and dividend payments, be assured that we have your interests in mind. SMEs are the backbone of our local economy, and we want to ensure that they are protected at all costs. Jobs, livelihoods, families, and futures are all interconnected with SMEs. The alternative approaches we offer are designed to protect both your business and lifestyle.

We have an elite team of financial experts that are serious about their trade. We have a variety of team members at Boardroom Punks with expertise in debt, VAT bills, business and project management, and government loans. Whatever advice you need regarding dividends, ensure that you have the right experts in your corner. We know how stressful it is to balance the needs of different shareholders, especially the ones who are financially generous toward an enterprise. Whatever stage you may be at, the Boardroom Punks will do their very best to come to the best possible solutions for your company.

Not only do we have experience across the board, but our business model was founded upon our managing director David Morgan. In 2008 he received the news that his chain of opticians was trading insolvent. After battling with the liquidators and the loss of £250,000, Morgan dedicated his time to finding alternative solutions that would help with restructuring both his own business and the SMEs of the future. Today, Boardroom Punks is the solution that our director strived for, and we believe that we have the right tools in place to get any business back to a state where it can stand on its own two feet.

However, don’t just take the claims of expertise from ourselves. Our business experts have put their skills to the test in many different trading models. Beauty salons, haulage companies, decorators, and even jewellers have all needed the advice of Boardroom Punks. Whatever SME you are looking to salvage, know that our solutions have been tried and tested across many different businesses. Some of the cases we are currently working on include businesses in the fitness industry, window installation, and wine. We always encourage our future clients to reach out and speak to those who have worked with us, as they are the best proof of our success.

Dividends are particularly important for keeping shareholder interest in a company. If a shareholder knows that they receive a sizeable dividend from the profit of a company they have invested in, then they will be more likely to keep investing in the future. Dividends are different from salaries as they do not have the same tax or national insurance implications. Understanding why dividends are critical for investment helps a company prioritise their payment to shareholders.

However, if a director or an enterprise does not pay the forecasted dividends, then it does not lead to the same incentives to invest in a company. If there are little to no returns for a shareholder, then they may be less likely to invest, resulting in a reduction of interest from other shareholders. A corporation or an enterprise may decide to use the annual profit to re-invest in the company – this is known as retained earnings – but it is not as beneficial for a shareholder. If a shareholder has assets and an internal interest in a company, then they may decide to re-invest their dividends in the company anyway. It is important to remember the level of involvement the shareholders have before deciding the degree to which dividend payments are made.

If you have fallen behind on dividend payments or have made reductions to them, your shareholders may have already filed a few complaints. At Boardroom Punks, we understand how hard it is to balance your finances across everyone involved in the business. It is crucial to keep everything in order from the employees to the directors. Your shareholders are no different. Their interest and investment may have led to the development of your company, and you are determined to keep them involved.