A PIONEERING scheme could eventually give a second chance to Bolton businesses on the brink of bankruptcy.

The Head of the Government's Small Business Service, David Irwin, has unveiled a plan which will involve Business Link advisers working as company "doctors."

They will put together rescue packages which concentrate on long-term debt management through realistic assessments of businesses for creditors.

Credible assessments will provide the basis for negotiation on payment arrangements with creditors.

The advisers will then:

Confirm that the debtor firm is capable of rescue.

Develop a package which takes account of the firm's needs -- perhaps financial, management or marketing.

Ensure the company stays on the road to recovery and learns from its experience.

The groundbreaking initiative will run in Manchester, Newcastle, North Yorkshire, Hampshire, Dorset, the Isle of White, Leicesterwhire, Nottingham, West Midlands and the East of England.

Trouble

It will enable Business Link advisers to identify small businesses which are running into trouble before they meet the point of no return and fall into bankruptcy.

An SBS spokesperson said the pilot will initially run for between six and 12 months.

"Hopefully, if it is a success, it will be rolled out to other areas after that," she said.

Mr Irwin said: "I want to change the way the business community behaves towards small firms that experience a cash-flow crisis.

"Too often, the liquidators are called in to viable firms due to short-term problems that can be solved.

"As a result, jobs and livelihoods are lost and the potential that the businesses had to generate wealth is gone."

He added: "Small businesses account for 55 per cent of GDP and 50 per cent of jobs and rarely have the resources to appoint specialists to help them in times of need."

Some large concerns avoid bankruptcy by hiring "company doctors."

The SBS says the programme is intended to offer small businesses access to the same kind of advice.

The project is part of the response to a joint report by the Department of Trade and Industry and the Treasury which called for greater flexibility from all concerned and more research into addressing firms' short-term problems.