Are you struggling with business debt?
Running a business takes passion, dedication, hard work, intelligence, and a little bit of luck. So when you start to realise “my business is in debt”, it can be devastating.
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’s vital to identify, assess and respond to the signs of company turmoil to give your business the best chance of survival.
Debt Rescue can assist you with a range of formal and informal business debt relief options to help you turn your business around. If you’re struggling with business debt, give us a call today to see how we can assist you.
The Benefits of Business Debt Help
There are various penalties and consequences for companies that continue trading while they’re insolvent. In some cases, the directors of these companies can be held personally liable. The consequences can include civil penalties, compensation proceedings or even criminal charges.
The Corporations Act provides some statutory defences for directors. However, directors must stay on top of the company’s financial position to rely on these defences.
Know all your options so you can make the best decision for your business.
Consult with professionals who know the ins and outs of business debt solutions.
Avoid harsh penalties by being proactive about your business finances.
Use this as an opportunity to fine-tune and improve your business.
When to Seek Help from a Business Debt Negotiator
Business owners can unexpectedly come under financial duress because of circumstances outside of their control. There could be changes in the economy, a customer might not pay an account, you could lose a vital contract, or your debts could simply become unmanageable.
If your company is experiencing financial pressures, you should assess its solvency situation. If it looks as though your business is heading towards insolvency, you need to take immediate action.
When considering strategic action, it’s important to be realistic about your financial situation. We recommend seeking an expert opinion from an experienced insolvency advisor. Having a professional look at your situation with fresh eyes will often produce the best outcome.
Some of the warning signs your business is headed towards insolvency include:
- Avoiding paying your financial liabilities – This might be because your business income isn’t in on time, or you simply don’t have the cash to make payments. Avoiding or delaying payments is a common red flag.
- Being unable to afford debts – Whether it’s to suppliers, creditors or stakeholders, being unable to pay your debts may mean it’s time to seek professional help.
- Struggling with cash flow – It’s definitely not uncommon for businesses to struggle with cash flow. And with a single chat with a professional, you can start retaking control of troublesome finances.
- Making promises you know you can’t keep – Sadly, this is one of the easiest ways to turn manageable debt into unmanageable debt. If you’ve made financial (or other business) promises that you doubt you’ll be able to fulfil, it might be time to chat to a friendly expert.
- It’s hard to find funding – Banks and other financial institutions tend to lend to those in strong financial positions. If you find that acquiring funding is getting harder and harder, it may be a sign that your financial position is becoming unmanageable.
- Lacking the passion and drive you had when you first opened – Across any industry, this is incredibly common, and nothing to be ashamed of. It’s easy to let simple tasks like accounting slip when the drive disappears. But with a single phone call, you can start putting your business debt stresses at ease.
Specialist Business Debt Negotiators
If your business is experiencing financial problems, you’ll likely require expert advice from an experienced company. That’s why we work alongside our partner companies, RJH Accountants and Revive Financial to provide business debt relief to people in need.
They specialise in providing expert service and advice to companies in financial difficulty. Their down-to-earth, practical approach means every case is treated with consideration and care.
Their skilled consultants are experienced in helping small, medium and large businesses from a diverse range of industries.
They understand the urgency of these matters and pride themselves on being able to adapt quickly to provide the most relevant and up-to-date advice to companies in financial distress.
Business Debt Options
Business Debt Negotiation
Through our partners at RJH Accountants, we can negotiate on your behalf with your creditors to look for an informal debt agreement, a debt settlement, or a partial (or complete) waiver of your business debts.
We can review each area of your business to uncover any major financial issues and draft a comprehensive action plan to get your business back on track.
We can attend to a Voluntary Administration of your company, which allows the business to continue trading while undertaking a formal restructure that includes a compromise with your creditors.
As Registered Liquidators, we can manage the liquidation of your company, helping the directors to comply with their statutory duties by wiping the debts and deregistering the company.
Learn More About Business Debt Relief
It can be difficult to find a clear answer to some of business debt’s toughest questions. From the basics like “why is my business in debt?” to the complexities of business insurance, our experts have produced all the resources you’ll need to answer the tough questions.
Need Help with Business Debt?
When your business is struggling with cash flow, it can be difficult to identify the source of the problem – let alone take steps to rectify it. If you need help with your personal and business debt, give Debt Rescue a call. We’ve partnered with specialist debt negotiation accountants and experienced insolvency advisors to offer a complete range of debt relief services. We can help you prioritise your debts and solve your financial issues, one step at a time.
For insightful information on business debt and how we can help, discover our archive of business debt articles.