Don't risk personal liability, liquidate your company fast to relieve financial stress
Helping you understand Company Liquidation in Adelaide
Company Liquidation is the process of winding up and finalising your company’s affairs. Liquidation is conducted under the Corporations Act and involves collecting your business’ assets, investigating its financial position, selling assets and distributing the funds to your creditors and then shareholders.
There are three main types of Liquidation offered in Adelaide: Creditors Voluntary Liquidation, Members Voluntary Liquidation and Court Liquidation. The type of Liquidation will depend on your company’s financial circumstances. If your business is facing insolvency and you think you might need to Liquidate your company, we can help decide the Liquidation process that will suit you best.
As with any business recovery, timing is everything. Paying attention to early warning sings could mean the difference between your business’ survival or it being forced into Liquidation.
Early Warning Signs Your Business May Be Facing Insolvency
- Occasionally cannot meet your suppliers’ debts,
- Using cash reserves, such as funds set aside for GST, PAYG or superannuation to cover temporary cash shortages,
- Increased use of personal credit cards to pay business expenses,
- Deteriorating relationship with the bank,
- Inability to obtain finance,
- Accumulated trading losses eroding your working capital, and
- An increased level of worry about your company’s financial circumstances.
Why Should You Choose to Liquidate Your Company?
Revive Financial can assess your company’s financial situation and put plans in place for the best course of action moving forward. Options may include Voluntary Administration and Business Turnaround and Restructuring which could be viable for your company if you still see a future of trading ahead. If it is determined that Liquidation is the best solution for your company’s financial struggles, then Liquidation does come with benefits and is the final option to wind up your company as fast as possible to minimise further losses.
You should choose Liquidation:
- To protect you from insolvent trading,
- To protect you from a Director Penalty Notice from the Australian Taxation Office (ATO) and being personally liable for your company’s tax debt,
- If your company is trading at a loss and cannot overturn the losses,
- If your company is struggling to pay creditors, including the ATO, and
- If your company has no or very little assets.
What Investigations Does the Liquidator Complete During the Process?
The in-house Revive Financial Liquidator appointed to your company must conduct investigations into your company’s affairs. They will investigate the following matters:
- When your company became insolvent and whether any debts were incurred after that date,
- Whether the director/s committed any offences,
- Whether there are any payments to particular creditors that are preferential and may be recoverable, and
- Whether there are any hidden assets to be recovered or other legal actions to consider.
Liquidate Your Business in Adelaide and Return to Financial Stability
The Liquidation process can take anywhere from six months to years. There is no set time limit as it takes as long as necessary to complete all matters and go through the process accordingly. Provided you complete the relevant forms and deliver all books and records to the appointed Liquidator, your role finishes very quickly.
At Revive Financial, we take care of the Liquidation process with understanding and efficiency. We see businesses fail every day through no fault of the directors. It could be anything from a poor period in sales or an unforeseen event which can tip the balance and result in insolvency. Liquidation allows you to move on with your life instead of worrying about your financials.
We Help Thousands of Businesses Liquidate Every Year
If Company Liquidation is the best solution for your situation, Revive Financial Adelaide will ensure the process is managed quickly, efficiently and affordably. Our dedicated team of experts are determined to help you get past the tough times and into a better financial position.
Our team consists of Chartered Accountants, Registered Liquidators, Bankruptcy Trustees, Turnaround Specialists and Financial Advisors. We have been supporting Adelaide clients for over 10 years. Industries include, property development, food and beverage and manufacturing, as well as many other Adelaide-based businesses.