Business Financial Difficulties Rome

Handling Business Financial Difficulties in Rome

Business owners' lack of experience but also external factors beyond their control - new competitors, defection of suppliers or a rapid turnover of staff - can make your business in Rome vulnerable. Smaller businesses, such as shops and small language schools, are particularly prone to financial difficulties as they often lack resources to adapt to rapidly-changing market conditions. It is essential that they keep a close eye on their finances, especially as potentially serious problems are not always immediately apparent.

A 2007 Communication from the European Commission lays out proposals to actively help businesses at risk of financial meltdown - mainly providing affordable expert advice to enable early action and prevent bankruptcy. National insolvency systems should provide more options for restructuring and rescue.
In Italy there is no specific funding for businesses facing difficulties. In the majority of cases the funds are allocated to companies who are able to prove their finances are in good shape. Precluding financial problems is thus of utmost importance.
Private Italian banks give loans to Italian and Rome based companies in financial difficulty only after having thoroughly assessed their financial situation and the company's prospected ability to repay.
The State supports employees who work in bigger businesses structures facing financial difficulty with the ordinary earnings complement (CIG)  and the extraordinary wage supplementation payments and indemnity benefits (CIGS) . These guarantee alternative income for employees.
The ordinary earnings complement (CIG) applies to workers, employees and executives when production activity is suspended or reduced in the light of temporary market conditions or temporary circumstances which are not directly imputable to entrepreneurs or workers. Extraordinary wage supplement payments and indemnity benefits (CIGS) can be requested in the case of company restructuring, reorganisation, shake-up or a change in production.
To receive ordinary earnings complements (CIG), businesses must apply to the Italian National Social Security Institute (INPS) within 25 days of the end of the salary period, and in the same week during which the suspension or the reduced working hours have begun.
To receive extraordinary wage supplement payments and indemnity benefits (CIGS), businesses must submit an application to the Ministry of Labour and Social Security within 25 days starting from the end of the salary period in the week during which the suspension, or the reduced working hours, have begun. The application must include the recovery programme, the business plans to be implemented, the planned company restructuring or shake-up, the profit and loss account and the financial standing of the business over the previous three years.
 

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