Business in trouble? 3 options to consider if your company is facing financial hardship
Is your business facing financial hardship? Are you having trouble paying suppliers, the bank, or even the ATO?
We know it can be stressful, if not 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 Rapsey Griffiths. We can look into your situation, come up with various options, and help you choose the one that’s right for you.
You need someone who’s 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.
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 three major requirements—a core viable business, adequate financial resources and sufficient organisational resources. And from there, we’ll determine the best course of action for you to take.
Another option may be Voluntary Administration, which is designed to quickly resolve a company’s future direction.
An independent and suitably qualified voluntary administrator takes 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 company’s affairs. Using the company’s Deed of Company arrangement, they’ll try to give creditors a better return than they’d get from having the company placed into liquidation.
Putting a company into voluntary administration is a quick and easy process. The Board of Directors simply needs 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 voluntary administrator.
And finally there’s 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.
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. That may involve restructuring your company, or even winding it up.
But if you don’t act you risk trading while insolvent, breaching your director duties, or being personally liable for the company’s 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.