An insolvent business is one that is unable to pay its debts on time, but it isn’t always clear whether the situation can turn around, or if a business insolvency plan should be implemented.
It can be overwhelming and very discouraging when, as a business or individual, you are finding it difficult to pay back your debts. However, if this is your situation, it is crucial that you act early to ensure a positive future for yourself and your business.
If you’re finding it hard to repay your creditors, one of the first things you should consider is approaching them to see if an informal agreement can be reached. Your creditors may be willing to give you more time, lower your interest rate or reduce penalties. Sometimes an informal agreement is all it takes to get your business back on track.
When facing the possibility of business troubles ahead, you may need time to seek help and decide how to move forward. An Emergency Business Loan , which gives your business access to secure funding, may be just the solution needed to increase cash flow and turn a negative situation around quickly.
For those who qualify, at Lawrence Group, we can swiftly assist with you with your application for an Emergency Business Loan.
Getting advice and an action plan from experienced Business Advisors can really help businesses get back into the black. There are many strategies an experienced advisor like Lawrence Group can help you put in place to alleviate the financial strain and start refining your business while control is still in your hands and not an administrator’s.
It’s important to remember that if your business is experiencing financial difficulty, you are not alone. There is always a solution out, and it’s never too early (or too late) to seek help.
Voluntary administration is a process used when a business is trading while insolvent, or suspects it might become insolvent soon. An external administrator is appointed to help resolve problems, and may be able to keep the business out of liquidation.
If the business cannot be recovered, the voluntary administrator will assist in providing the best possible returns for employees, investors, shareholders and creditors. If your business is heading towards voluntary administration, you need a team of experts to help assess your situation and determine the best way forward.
A deed of company arrangement (DOCA) is a legally binding agreement between a company and its creditors which sets out how issues will be handled if the company may become insolvent or if they have entered voluntary administration.
A DOCA can give your business time to handle its affairs without winding up straight away. It can also help provide a better situation for those involved in your business, and your creditors.
When facing the possibility of business insolvency, it can seem overwhelming and hopeless. However, speaking to a professional may open doors that you have not considered. The most important thing is to act quickly: that way you can maximise your chances of a positive outcome.
At Lawrence Group, we have assisted many business owners facing insolvency find the best solution for their situation. Let us help you. Give us a call today on (+618) 9433 3288 or fill out our contact form for an obligation-free discussion about how we can assist.
This article is general information only. It does not give business, accounting, taxation, financial planning or other professional advice or service. It does not consider your specific situation, objectives or needs and if personal advice is required, a detailed analysis of your particular circumstances would need to be sought. Please see our Privacy and Disclaimers page for further information.