Give your company its best chance to avoid insolvency with a voluntary administration
Guiding You Through the Voluntary Administration Process in Sydney
When companies are facing financial distress, it can be a stressful and difficult situation to be in. In the 2017-18 financial year, 11,057 companies in Australia were reported as being in external administration with 3,481 of those in New South Wales. Fortunately, when faced with insolvency, as a company director you do have options. Before initiating a formal insolvency appointment, you could choose to try a business restructure or turnaround strategy. These strategies may increase cash flow and return your company to profitability while avoiding Liquidation.
If a turnaround or restructure hasn’t worked, your next step is Voluntary Administration. Voluntary Administration (VA) is available to all Sydney-based companies in difficult financial circumstances to help avoid insolvent trading. It is a process where an insolvent company, or a company facing insolvency, is placed in the hands of an independent person (the Administrator) who assesses all of the options available and generates the best outcome for all parties involved.
The primary purpose of VA is to provide you with a flexible procedure which enables your company time to attempt a compromise or arrangement with your creditors, which may save your company, its business and jobs while maximising the return to your creditors. It is a way to trade out of your financial difficulties at a time when you are unable to pay your debts. VA should be considered before Liquidation. However, if your company cannot formulate a proposal that is agreed upon by both creditors and directors, VA can be used to easily and inexpensively wind up your company.
When Should You Initiate a Voluntary Administration?
The 4-Step Voluntary Administration Process
Free Financial Advice for Your Business
At Revive Financial, we understand how difficult it can be to watch your company struggle with its finances. That’s why when you get in touch with our Sydney team, we provide a free 30-minute consultation and business health check so we can get to know your company and its current financial situation.
Our dedicated, friendly team has over 43 years of combined experience and will work with you to assess the situation and provide the best recommendation to help you regain your peace of mind. If Voluntary Administration is recommended for your business, you can rest easy knowing professionals are on the job. Our team consists of Chartered Accountants, Registered Liquidators, Bankruptcy Trustees, Turnaround Specialists and Financial Advisors who are ready to help you turn your business around.