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When businesses face financial distress, timely and expert advice is important. Unfortunately, not all advice is created equal.
Many Directors don’t understand the gravity of the ATO now being able to report their business debt information to a credit reporting bureau (CRB) or receiving a Statutory Demand or Winding Up Application at their company’s registered office.
Opportunistic operators exploit this lack of knowledge, targeting vulnerable small business owners with misleading promises and unqualified advice. They usually charge large fees to “organise” a reference, liquidation, or Small Business Restructure; however, they are a middleman taking a cut along the way and taking advantage of your client.
These firms, often branding themselves as ‘pre-insolvency advisors’ or ‘financial rescue services,’ contact Directors after their company appears on the Australian Securities and Investments Commission (ASIC) Insolvency Notices page or on a CRB.
Rather than offering real solutions, these operators engage in high-pressure tactics, claiming they can “fix” financial difficulties—often without the necessary qualifications, regulatory oversight, or professional insurance. Their involvement can leave Directors in an even worse position, without fully understanding the risks of personal liability and further legal complications that should have been explained to them.
As accountants and lawyers, your clients rely on you to guide them toward reputable, expert insolvency advice. At Rapsey Griffiths, we are qualified, regulated, and insured specialists in corporate insolvency and business turnaround. We have a proven track record and always consider all options to save a business. When insolvency is necessary, we clearly outline the risks and process, so people are fully prepared.
We work closely with professional advisors to ensure Directors receive the right solutions within strict deadlines.
If you have clients facing financial challenges, don’t let them fall victim to unqualified and opportunistic operators. Direct them to trusted, experienced professionals who can provide the right guidance when it matters most.
Here are some tips on Choosing the Right Insolvency Advisor: 3 Essential Checks
When your clients face financial distress, the insolvency advisor they choose can make all the difference. Unfortunately, not all advisors operate with the same level of expertise, ethics, or professionalism. Just as you wouldn’t trust an unlicensed doctor with your health or a dodgy builder with your home, businesses shouldn’t entrust their financial future to unqualified insolvency practitioners.
To ensure your clients receive the best possible guidance, here are three checks to perform before engaging an insolvency advisor:
Are They Properly Qualified and Registered?
The insolvency industry is strictly regulated in Australia, and only registered liquidators and trustees are legally permitted to undertake insolvency appointments.
Before engaging an advisor, check if they are registered with the Australian Securities and Investments Commission (ASIC) as a liquidator or with the Australian Financial Security Authority (AFSA) as a trustee. Without these credentials, they may lack the authority and expertise to provide the right solutions for your clients.
Are they an ARITA member? ARITA Professional Members are experienced, fully qualified and up to date with all the latest legal requirements. They are held to the highest standards of ARITA’s Code of Professional Practice and are fully insured, assuring you that you’re getting the right advice and assistance you need.
Do They Have a Track Record of Success?
An insolvency practitioner’s history speaks volumes about their capabilities. Reputable advisors will have a proven track record of helping businesses restructure, recover, or, when necessary, navigate the liquidation process with professionalism and transparency.
Beware of operators who focus solely on liquidations without exploring alternative solutions such as voluntary administration or small business restructuring. A good insolvency advisor considers all options and provides tailored recommendations to suit each client’s circumstances.
Are They Transparent About Fees and Processes?
Unqualified insolvency operators often lure businesses in with promises of quick fixes, only to charge excessive fees while delivering little to no real assistance. Many act as intermediaries, taking a significant cut before passing the case to a real liquidator or restructuring expert.
A reputable insolvency firm will be upfront about costs, processes, and potential risks. They will provide clear, written explanations of their fees and services, so your clients understand exactly what to expect.
Trust Rapsey Griffiths for Expert Insolvency Advice
At Rapsey Griffiths, we are fully qualified, registered, and insured insolvency professionals. We take a holistic approach, assessing all possible avenues to help businesses regain stability or, if necessary, manage insolvency proceedings with integrity and care.
If your clients are facing financial difficulties, ensure they receive expert, ethical, and professional advice. Contact us today for trusted guidance on insolvency and business turnaround solutions.