My Business Is Failing. What Do I Do?

When your business fails due to financial difficulties, it’s time to seek expert advice. We are registered Australian Financial Security Authority bankruptcy trustees and liquidators, and we can deal with companies across Australia. Together, we’ll work on solutions.

Piling up debts can lead to a stressful life. Many people don’t take this problem seriously and wait too long before seeking the services of a professional debt adviser. It is not only poor financial management that can lead to this situation.

Often, business owners cannot see the issues, as explained in this case study, so things get out of control. Our team has a wealth of experience with business failures and helping companies through financial difficulties, and we have guided companies across the country through tough times. We’ll answer your questions and provide informed advice.

Why Is This Happening? 3 Reasons Why Businesses Fail

“I feel like my business is failing” is usually the first step when looking objectively at the situation. You should ask yourself these three questions and need an honest answer.

• Can steps be taken to restructure your company into a more cost-effective model?

• Would altered business practices increase the possibility of continued trading?

• Should debt reduction methods be a lead priority?

My Business is Failing – Can You Help?

We know that you may not be thinking straight when dealing with a crisis, overlook critical factors, or miss necessary knowledge. We offer different tiers of support depending on your needs, from a quick, obligation-free consultation to creating an action plan for success. When we consult with a company in financial difficulty, we can offer realistic situational analysis and find ways to turn things around with our business restructuring services. We’ll assist with the next stage if saving your business proves untenable.

Are There Government Initiatives to Help?

Several government incentives, such as JobKeeper and the Australian Government’s SME Recovery Loan Scheme, are available. As these incentives are updated regularly, we keep up to date with this new information. We can integrate and evaluate the available options regarding your situation and devise a path forward.

What Is the Difference Between Insolvency and Insolvent Trading?

Insolvency means your business lacks the resources to pay due debts. At the first sign of potential default in the company’s future, seek expert advice, increasing the chance of a positive outcome. Insolvent trading occurs when you continue to do business despite being unable to pay present debts and choosing to incur more debt.

There are risks and penalties if a company trades while insolvent, so it is essential to understand the ramifications of Insolvent Trading.

Should I Enter Voluntary Administration?

Voluntary administration should be considered when your Business Is Failing, as it allows your board to appoint an administrator. An administrator can ascertain whether the company can survive or should be sold or liquidated. They may decide the company can be salvaged by a comprehensive restructuring of your business, making this a wise decision in retrospect.

We have vast experience with companies that choose to enter administration, often hoping to save the business. We can often help turn things around before a company reaches the point of liquidation.

What Are Insolvency Law Reforms?

The WA Small Business Development Corporation clarifies that 2021 Australian insolvency law reforms allow incorporated small businesses to work with a specialist small business restructuring practitioner. The team can instigate proven turn-around procedures thanks to the new model, avoiding the more cumbersome standard administration model. Best of all, the new model allows you to retain business control.

What Does Business Liquidation Mean?

Entering the liquidation process signals the end of the business for financial reasons. The focus is on dealing with the company’s debt, which involves a liquidator taking control to ensure the best result for creditors. The courts may force you into this process, or it may be voluntary. If you still hold out hopes of your company moving forward, a consultation can ascertain whether liquidation is avoidable, recommended, or compulsory.