Company directors are usually scared of the law if their company gets into financial difficulty. Because we deal with it every day, we can assure you that the law can be your best friend. Most people don’t set out to rip off their creditors.
In our experience, the vast majority are trying to do the right thing. So when you’re in financial trouble, reach out to us to understand what is the best way to continue to do the right thing and benefit from the law. Ultimately, the law is designed to ensure that everyone is treated fairly when companies get into financial trouble. You can avoid personal liability for company debts if you get in touch with us when you start seeing warning signs.
When companies get into financial trouble, directors often think they are the only people who can get it back on track. After all, nobody knows the business better than the directors… right?
Half right!
Sure, nobody knows the business better than the directors, but that’s exactly why the directors need an objective external advisor to look at the situation with a fresh set of eyes and come up with ideas for the directors to consider. At Business Rescue Solutions, we have proven business skills across a wide variety of industries and can help you find a path through the financial problems that your business is facing.
At Business Rescue Solutions, we work with the directors to come up with ideas and options to address the company’s financial distress. Don’t let fear stop you from asking for help. We get it – directors fear that they will lose control, that it will cost too much (better to save that money and use it to pay off some of the debt), and that external advisors are overpaid and will just come in and introduce another cost which could be better spent elsewhere.
Understandably, directors think that they know what needs to be done. They’ve gotten through hard times before! What directors may be missing, however, are the incredible opportunities available to the company if they seek help from properly qualified people and specialists in helping companies in financial distress.
It might not be easy, but the sooner you ask for advice from us, the better the outcomes will be, but it’s never too late to ask for help!
Many businesses will experience some form of financial difficulty at some point.
You need to remember during this time that experiencing financial or operational difficulties with your company does not necessarily mean your business is beyond rescue.
Although it may be difficult to see a way out, there are a range of rescue and recovery options that may be able to help you negotiate with creditors for more favourable payment terms, protect your company from ongoing or threatened legal action, and even give you the time and space to restructure your company to help it return to a profitable state.
When you’re alone, and in the middle of all the financial trouble, everyone comes to you for the solutions – who do we pay first?
- Wages are due!
- The tax office debt just gets bigger and bigger.
- Clients are screaming that their job is overdue.
- Suppliers aren’t willing to supply any more.
- The finance arrangements are in default.
- Tax lodgments are well overdue (if they’re overdue more than three months, you could be immediately personally liable).
- Internal accounting is falling well behind.
- You can’t even get a clear picture of the company’s position.
The weight is well and truly on your shoulders, and you just need someone to talk to before it’s too late – and it’s never too late to talk to us! There’s always a solution.
Solutions
We provide solutions! This can be done under the guidance of our ASIC-licensed accounting professionals. We will be able to assess your company’s current position and advise you on the options to help you navigate your challenges. Often times people say, “I wish I knew about this six months ago. I can get on with earning money now.” Stop looking in the rear vision mirror and get on with life.
Some of the options available to you could be:
- For eligible small businesses, a small business restructure (“SBR”). It’s a lifeline to an otherwise viable business. We do these regularly and 100% of our small business proposals have been accepted by creditors.
- Maybe the involvement of our experts could assist with direct negotiation with key creditors, including financiers.
- If you’re not eligible for an SBR, a voluntary administration followed by an arrangement with creditors.
- Perhaps you could use the safe harbour provisions of the Corporations Act.
- If you do not think that the company can be saved, we can get involved to do an orderly winding up rather than waiting for a knock at the door from a Liquidator appointed by the Court.
As the director of an insolvent company, you have a legal duty to protect the interests of your creditors and ensure your actions do not cause them to suffer further financial losses. By enlisting the help of our ASIC-registered expert advisors, we can help you with your legal obligations as a director.
At Real Business Rescue, our ASIC-registered practitioners speak to company directors just like you each and every day.
We can help you understand your options and put a plan in place going forward.