If you are a business owner and you have a combination of personal and business financial obligations, then it’s possible to have the majority – if not all, of the debts eliminated with bankruptcy. Keep in mind this is a complex process and needs specific focus. The truth is, personal bankruptcy doesn’t automatically mean business bankruptcy too. Whether you operate your business as a Sole Trader, Partnership, Company or Trust we can help explore your alternatives. Call us on 1300 339 604 for a no obligation FREE consultation.
We offer a wide range of services to help your business through these challenging times, including business Turnaround/Restructure, Safe Harbour strategies, Voluntary Administration and Company Liquidation.
If your company is experiencing financial distress, acting fast and implementing a business turnaround can help your company survive. Our team can provide you with an action plan moving forward.
Cashflow problems generally lead to an increased risk of business insolvency. Our team can assess your company’s financial position and implement a plan to help increase cashflow and profitability.
TAX DEBT SOLUTIONS
The biggest trigger for Company Liquidations and Personal Bankruptcies is the ATO. We work with you to explore your options and assist you in making the right decisions to resolve your tax debts.
There are certain circumstances where you, as director, could be unprotected by the company and held personally liable for its debts. We can help you understand the risks and help with making the right decisions.
Voluntary Administration provides your business the opportunity to combine creditor debts under a Deed of Company Arrangement, allowing you to pay back an affordable amount and continue operating.
If you’re facing severe financial difficulty and are unable to pay your company’s debts, our in-house ASIC Registered Liquidator can help you liquidate your company fast to clear your debts and protect your personal finances and assets.
What Impact will Bankruptcy have on My Business?
There are limitations for business owners that are bankrupt. For example, as a bankrupt business owner you can operate your own business as a sole trader only. For some business owners, bankruptcy can impact their ability to manage the business due to industry licensing requirements. For example, a contractor with a builder’s license can not use that license for the 3 years he or she is bankrupt. There are other implications for bankrupt business owners that need to be considered. If you want to know more, please call us for a no obligation free consultation on 1300 339 604.
Beware of these Early Warning Signs of Insolvency
POOR CASHFLOW MANAGEMENT
If your business fails to manage cashflow strategically, it could lead to catastrophic events. This includes losing major customers, paying increased interest rates or correcting ineffective control systems.
INABILITY TO ACCESS FINANCE
When obtaining finance, you want the lowest interest rates provided by the best lenders. However, if you’re being forced to look at alternative financing because the banks deem you too risky, this is a sure sign of insolvency.
DISORGANISED BUSINESS RECORDS
If you’re finding it hard to prepare accurate financial statements for your business because your files are disorganised, this is a worrying sign. Poor organisation can mean poor financial and business management.
INADEQUATE CASH RESERVES
It’s important to have cash reserves in place to deal with unexpected events, fund growth strategies and leverage opportunities as they arise. If there is no cash reserve, your business may be experiencing financial difficulties.
Should I Consider Liquidation?
One of the main factors you may want to consider in liquidation rather than bankruptcy is because if you liquidate your business, it does not definitely mean you need to declare bankruptcy. In Australia, businesses that become insolvent have a couple of alternatives, including liquidation, voluntary administration etc. If you would like to know more call us on 1300 339 604.
How It Works
We know your time is important and access to immediate solutions is a priority, so we created a simple 3 step process. Our no hassle service is all about speed, with the aim to remove financial stress quickly!
We analyse your situation
We provide options tailored to your needs
We resolve your debt issues
Isn’t it illegal to run a similar business after bankruptcy?
Possibly. There are considerations when and if you declare bankruptcy as a business owner. You can not accumulate loads of financial debt in your business, then declare bankruptcy and after that open the doors the following day like nothing has taken place. There are regulations in place to stop what is called ‘Phoenix companies’ rising up out of the ashes of an old business. Don’t get overly stressed out worrying what you can and can’t do as a company owner; simply get the appropriate assistance by contacting Bankruptcy Solutions today on 1300 339 604.
How to Reduce Your Business Debt
PRIORITISE YOUR DEBTS
If your business debts are spiralling out of control, our team can help turn your business finances around with a professional debt relief strategy and action plan.
TAKE ACTION NOW
It’s important to tackle your business debts head-on. The longer you leave it, the harder it will be to resolve and the less chance your company will survive.
ASSESS YOUR FINANCES
Make a list of all the money you owe and that you are owed so you can assess your company’s financial situation. Consider hiring an accountant or bookkeeper.
Contact your creditors and let them know about your company’s current financial situation. You may be able to a negotiate an affordable payment plan.
CONTACT YOUR BANK
Often banks are able to provide assistance if you’re struggling financially. Contact your bank to discuss your situation and options that may be available.
CHASE UP UNPAID INVOICES
Following up on late payers or non-paying customers can potentially bring in some much-needed income to help the company get back on track.
Act Quickly to Mitigate Risk and Minimise Losses
Our team knows time is of the essence when it comes to business debt and a fast solution could be the difference between keeping or losing your company. Our expert financial specialists have years of experience assisting companies with financial hardship. We pride ourselves on being able to adapt quickly to provide the most relevant and up-to-date advice to companies in financial distress.
Fast Company Wind-up
We have partnered with Revive Financial to improve our ability to offer financial solutions to Australian business owners who, for one reason or another, are in financial distress.
Revive Financial is a specialist insolvency firm offering business debt and corporate insolvency solutions. They are are a national company servicing clients all over Australia and are known for providing low-cost liquidation and business turnaround services. Their stress-free process helps directors quickly and confidently re align or wind up their companies, protecting personal assets and avoiding any risk of illegal insolvent trading.
The team at Revive Financial will provide a free 30-minute consultation to better understand your financial circumstances, assess the viability of your business and create a customised action plan to help you turn things around.
Their in-house registered liquidator, Jarvis Archer can see your insolvency appointment through to completion.
Jarvis is a Registered Liquidator and Chartered Accountant. He has experience in business turnaround, distressed debt negotiations, corporate insolvency and personal insolvency matters.
His 16-year career across Brisbane and London Big Four firms has shaped his approach to resolving financial difficulties with appropriate and practical action. Jarvis specialises in small to medium-sized business engagements across all major industries.
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