Talking about money is awkward!
Its probably more unpleasant if you have to tell suppliers and employees you don’t have the money to pay them.
If you can’t pay your bills on time, you may be insolvent and that can lead to harsh penalties for the directors. (penalties up to $200,000)
Worrells says:
When a company experiences a period of poor performance and moves into a period of a financial recovery, it’s called a turnaround.
There’s two main mechanisms for business turnaround, but there’s informal workouts that may also be a good fit.
OPTION 1 – Small business restructuring
-An insolvency expert helps the directors to look at their company debts & negotiate an easier pay back plan
-On your behalf, the insolvency expert deals with creditors to agree on delayed payments, reduced payments or debt
-Oversees the dividend process while directors continue to manage their day-to-day business
OPTION 2 – Voluntary administration
-Directors can collaborate with an insolvency expert (with them taking the reins) to craft a strategy to satisfy the company’s debts.
-Gives directors a pathway to address any insolvency issues and return to a healthy trading prospect with creditor support.
-Restructure company operations to new & changing market conditions
Speak to us or your expert as soon as you think you might be in money trouble – you’ll have more options and less stress if you start the conversation early. Lets chat!
Check out Worrells if you think it might be time to ask for help https://worrells.net.au/campaign/business-turnaround-and-restructuring?
