Is your business facing financial hardship? Are you having trouble paying suppliers, the bank, or even the ATO? We know it can be stressful, even downright scary, but adopting a head in the sand attitude won't make things any better. Chances are, the situation will only get worse, especially if you breach your director duties by trading while insolvent.
Instead, you should talk to the team at Revive. We can look into your situation, come up with various options and help you choose the one that's right for you. You may have received liquidation or insolvency advice from unqualified advisors but don't be fooled. Many of these operators give poor advice then use a portion of your fee to pay a liquidator to do the actual work.
You need someone who is qualified, has experience helping businesses in similar situations and can act quickly because the sooner you implement a turnaround strategy, the better the chances of saving your business.
Here are a few options we can talk about to help you deal with your financial situation.
Restructure & Turnaround Engagements
With restructure and turnaround engagements, we look at the chance of your business surviving, identify appropriate strategies and develop a preliminary action plan. At first glance, it may seem your business is about to fail, but even if you've suffered major losses it could still survive. We may even discover, it's merely declining. We'll look at your business in terms of 3 major requirements:
- a core viable business
- adequate financial resources
- sufficient organisational resources
From there, we'll determine the best course of action for you to take. Another option may be voluntary administration.
Voluntary Administration is designed to quickly resolve a company's future direction. An independent and suitably qualified voluntary administrator take full control of the company and tries to work out how to save either the company or its business. If neither is possible, they'll start administering the companies affairs.
Using the company's deed of company arrangement they'll try to give creditors a better return than what they would get putting a company into liquidation.
Putting a company into Voluntary administration is a quick and easy process. The board of directors simply need to agree that the company is insolvent, or is likely to become insolvent and that they need to appoint an administrator. They also need the written consent of a registered liquidator to act as a voluntary administrator.
Creditors Voluntary Liquidation
Finally, there's a creditors voluntary liquidation - where an independent and suitably qualified liquidator takes control of the company to wind up its affairs quickly and fairly for the benefit of its creditors.
Revive Financial Can Help
If you think your company is in financial trouble, don't bury your head in the sand. Talk to an expert as soon as possible and find out how to minimise the impact on your stakeholders. It may involve restructuring your company, or even winding it up.
But if you don't act, you risk trading while insolvent, breaching your directors' duties and being personally liable for your companies debts. So get in touch with us today to arrange a free and confidential consultation and let us help you get your life back on track.
For more information on director advice, check out our director advice page here.