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Administration
An administrator takes control to rescue the company as a going concern, sell it, or achieve a better return for creditors than an immediate winding-up. It gives breathing space and a moratorium on most creditor action while a plan is worked out.
Liquidation
Liquidation ends the company. A liquidator realises the assets and distributes proceeds to creditors in legal priority — secured lenders and preferential claims first. Directors’ conduct is reviewed. Neither route makes you personally liable without a guarantee or misconduct.
What it means for you
Credicorp lends to your company, not to you personally, and takes no personal guarantee. See business loans or apply online.
Frequently asked questions
Which is better, administration or liquidation?
Administration is a rescue tool that can preserve the business or jobs; liquidation closes the company. Which fits depends on whether the business is viable.
Am I personally liable in either?
Not merely by the process. Personal liability arises from a personal guarantee or director misconduct such as wrongful trading, not from insolvency itself.
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Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.