Once your business is under financial distress, and trading in an insolvent state the directors may apply to have the business set under business rescue, where compromises can be met with creditors and a business rescue plan set in place. A business rescue practitioner must be signed on to take over all the financial duties of the company. If the business rescue plan does not work the company will file for liquidation.

When the liabilities exceed your assets, and current liabilities cannot be paid on time and the company is running at major losses with negative cash flows and no future contracts are extended or future economic growth can be realised.

1. You can get an exempt certificate which means you are a level 4 contributor and 100% BBBEE compliant. The threshold for issuing this certificate is different in certain business sectors. The threshold for businesses that do not fall in these specified sectors is an annual turnover of R10 million or less. In some cases the customers you are working with will require a BBBEE certificate or scorecard to better their scoring points on BBBEE. Then you will also require a certificate because of your customers BBBEE policy. If you are above any of the thresholds you will need to appoint an accredited BBBEE verification agency.