Business Debt in Australia
In Australia’s challenging economic climate, even the most successful business can fall prey to volatile market conditions and cash flow pressures. In these situations, it is vital to identify, assess and respond to the signs of company turmoil to give your business the best chance of survival.
By engaging us at Revive Financial, you can take a step back from your company and breathe easy while our experts work out the best way forward. We can assist you with a wide range of formal and informal insolvency options to help turn your business around.
Early Warning Signs of Insolvency
Inability to Access Finance
When obtaining loans and finance, you generally want the lowest interest rates provided by the best lenders. However, if you’re being forced to look at alternative financing because the banks deem you too risky, this is a sure sign of insolvency.
Poor Cashflow Management
If your business fails to manage cashflow strategically, it could lead to catastrophic events. This includes losing major customers, paying increased interest rates or correcting ineffective control systems.
Disorganised Business Records
If you’re finding it hard to prepare accurate financial statements for your business because your files are disorganised, this is a worrying sign. Poor organisation can mean poor financial and business management.
Inadequate Cash Reserves
It’s important to have cash reserves in place to deal with unexpected events, fund growth strategies and leverage opportunities as they arise. If there is no cash reserve, your business may be experiencing financial difficulties.
How to Reduce Your Business Debts
Prioritise Your Debts
If your business debts are spiralling out of control, our team can help turn your business finances around with a professional debt relief strategy and action plan.
Take Action Now
It’s important to tackle your business debts head-on. The longer you leave it, the harder it will be to resolve and the less options available to help your company survive.
Assess Your Finances
Make a list of all the money you owe and that you are owed so you can assess your company’s financial situation. Consider hiring an accountant or bookkeeper.
Contact Your Bank
Often banks are able to provide assistance if you’re struggling financially. Contact your bank to discuss your situation and options that may be available.
Negotiate with Creditors
Get in touch with your creditors and let them know about your company’s current financial situation and that you’re struggling with debt. You may be able to negotiate a payment plan.
Chase Up Unpaid Invoices
Following up on late payers or non-paying customers can potentially bring in some much-needed income to help the company survive.
Worried about trading insolvent? Get in touch with our professional team today to find out your options.
How it Works
Get in Touch with Us
If your company is struggling with debt, the first step is to contact our friendly team. You can do this over the phone, by email or by online chat.
We Assess Your Company's Financial Situation
Our team will assess your company’s financial position and offer our knowledge and support through this challenging time.
Provide You with the Best Solution
Once we’ve assessed your situation, we’ll provide you with the best solution to get your company back on the path to success.
We Help You Apply
Once you’ve agreed to engage us, we’ll help you gather any required paperwork and help you fill in the necessary forms.
Alleviate Stress and Regain Control
Our team are on-hand to solve your company debt issues. No matter the solution, we’ll reduce debt stress and help you regain control as fast as possible.
Why Choose Revive Financial?
Revive Financial is an Insolvency Practitioner you can rely on for professionalism, honesty and experience. We won’t offer generalised advice or a one size fits all solution. Revive Financial takes the time to learn about you, your business and your struggles to properly advise you on the best way forward.
Revive Financial aims to help save your company from financial disaster and declaring bankruptcy. Our team has experience helping small, medium and large businesses from a diverse range of industries.
Our team knows time is of the essence when it comes to business debt and a fast solution could be the difference between keeping or losing your company. Our expert financial specialists have years of experience assisting companies with financial hardship and we pride ourselves on being able to adapt quickly to provide the most relevant and up-to-date advice to companies in financial distress.
What Makes Us Great
In-house ASIC Registered Liquidator
In-house ASIC Registered Bankruptcy Trustee
CPA and CA Qualified Accountants
Professional Members of TMA
Professional Members of ARITA
Rated 4.9 out of 5 on Trustpilot
Worried about the viability of your business? Get in touch with our business debt specialists today for a free business health check and analysis.
Business Debt FAQs
Insolvency refers to when a business can't meet its financial obligations towards its lenders (and/or tax obligations towards the ATO) when the debts fall due for payment. If your company is insolvent and you continue to trade, it can lead to legal action. Insolvency can also lead to the business entering informal arrangements with its creditors. Businesses at this stage might look into restructuring and/or turnaround plans.
Beyond that, businesses in financial strife could enter insolvency procedures such as Voluntary Administration and Company Liquidation. These could help creditors achieve a better outcome and support the business in returning to profitable trading or, alternatively, in shutting down.
Business insolvency can occur for a number of reasons, such as challenging market conditions, poor cashflow management, or a downturn in sales.
It is your duty as a director to prevent insolvent trading. Insolvent trading happens when a business continues to trade and incur debts, even though it's unable to pay them as they fall due. If your company is insolvent, it's important to act quickly and seek professional advice. Generally exploring options such as Voluntary Administration or Liquidation can help to protect your assets and minimise the personal liability risks involved.
If your company is experiencing financial distress, there are options avaliable to get it back on track. If action is taken early, you may be able to implement a successful business turnaround or restructure to continue operating into the future.
If the company is in severe debt and may be insolvent, a turnaround/restructure may not help. In this case, a Voluntary Administration can provide your business with its best chance to survive. Alternatively, Company Liquidation may be the best option depending on the circumstances. Company Liquidation clears all debts, including ATO debts, alleviates debt stress and minimises lossess.
Company Directors are not usually liable for company debts as a company is a seperate legal entity. There are, however, some circumstances where you may become liable. These include signing a personal guarantee or breaching your duties as a director such as trading while insolvent.