In a short time, the Coronavirus (COVID-19) has had a devastating impact on many Australian businesses.
If your business is facing major disruption to revenue and profitability, which cannot be overcome during the period of COVID-19 disruption, it's important to act now.
The Australian Government's stimulus package may be of assistance, but if you have been directly affected by the Government's policy to cease trading and already in a significant amount of debt, it may not be enough.
There have been a number of legislative changes that will provide company directors much-needed time to put an action plan in place and stops creditors from forcing you into liquidation.
At Revive Financial, we're here to support you through this period of uncertainty with a variety of methods:
Our team are here to help you navigate any added pressures of COVID-19. Call us on 1800 861 247 for fast, professional advice.
Having your company in financial distress is a difficult, stressful experience. Our team listen, support, care and are passionate about helping your company get out of debt.
We've put together a business survival guide to help you rebuild your company after Coronavirus. The guide goes through a step-by-step process on how to improve your company's profitability and options available to help deal with company debt if your business is in trouble.
Coronavirus is having a major impact across the country, with many Australian businesses forced to close due to the Government's tight social distancing restrictions. If your company is showing signs of financial distress, we've compiled 8 steps on how to combat this in the video below.
Please select the option that best describes your situation:
Eligible SMBs and not-for-profits will receive a credit for employee PAYG Withholding Tax of at least $20,000 and up to a total of $100,000. This will be delivered over two payments through credits in the BAS system when they lodge their BAS statements in April and then in October.
You can find out more here.
To support business investment, the Government is increasing the instant asset write-off threshold from $30,000 to $150,000. This allows businesses to immediately deduct purchases of eligible assets. Eligible businesses include those with an annual turnover less than $500 million.
You can find out more here.
The Australian Government is backing business investment by introducing the ability for businesses to deduct 50 per cent of the cost of an eligible asset on installation. Businesses with an annual turnover of less than $500 million who are purchasing new depreciable assets will be eligible.
You can find out more here.
Eligible businesses can apply for a wage subsidy of 50% of an apprentice or trainee’s wage for 9 months. Up to $21,000 per apprentice.
You can find out more here.
The Coronavirus SME Guarantee Scheme is also available for small to medium enterprises (SMEs) across the country. Under this scheme, the Government is providing a guarantee of 50 per cent to SME lenders for new unsecured loans to be used for working capital. This allows eligible businesses to borrow up to $250,000 for 3 years with an initial 6-month repayment holiday.
You can find out more here.
The Government has announced a mandatory code of conduct for commercial tenancies to support small and medium sized enterprises (SMEs) affected by the coronavirus. Rent reductions will be based on the tenant’s decline in turnover to ensure that the burden is shared between landlord and tenants.
You can find out more here.
The support of these parties will be critical for many Australian businesses. If you are not going to be able to meet obligations, it’s important you engage with them as soon as possible and outline your 6 to 12 month plan. They may be able to assist you through the crisis by negotiating rent reductions, rent-free periods or put a hold on loan repayments.
Due to the impact of COVID-19, many businesses will put off paying GST and PAYG over the next few months. However, this can lead to significant cashflow problems. It’s important to continue putting aside a percentage of sales to GST and PAYG to ensure you receive the ATO credit for up to $100,000.
You need to ensure you know about your future cashlow so you can take action in the future that may be necessary for your business’ survival. Once you have clarity about your likely cashflow, you can plan to cover any shortfalls or if required to negotiate with suppliers, the bank and the landlord.
If customers don’t pay your outstanding invoices, your business may struggle. It’s important to maintain communication with customers throughout these challenging times to ensure they know you may need to be paid, even if it’s just to set up a payment arrangement.
Before you access money in your profit, reserve or vault bank accounts straight away, you need to take into careful consideration what kind of funds you may need over the coming months. Factor these funds into your cashflow forecast so that they can provide you with the greatest chance of long-term survival.
If your company is experiencing overwhelming debt due to the impact of COVID-19, you need to act fast and speak to a corporate insolvency specialist as soon as possible. Getting help early provides your business with its best chance of surviving through this crisis.
More information on how our team can assist Australian businesses through this global crisis can be accessed below.
Revive Financial Pty Ltd (ABN 20 609 795 066) and Revive Business Pty Ltd (ABN 86 624 221 781) are authorised agents of Positive Solutions Finance Pty Ltd (Australian Credit Licence Number: 418721). All insolvency and credit services will be provided by Revive Financial Pty Ltd, Revive Business Pty Ltd and Positive Solutions Finance Pty Ltd and their licensed representatives. Revive Financial Pty Ltd and Revive Business Pty Ltd are part of Lanyana Financial Group.
© 2020 Revive Financial. All Rights Reserved.