Find out how a Small Business Restructure could be the answer to your financial problems
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Opt for a Small Business Restructure Plan and steer your business towards recovery within just 36 business days
of Plans Approved*
Avg. Debt Reduction*
Avg. Savings of Clients during 2023*
*Data is from SBRs we completed in 2023 and is accurate at distribution and indicative only. Actual results may vary. No future outcomes are guaranteed.
If you have a small business in financial distress, a Small Business Restructure can help alleviate the pressure surrounding business debts. Your company works with one of our registered Small Business Restructuring Practitioners (SBRPs) to negotiate payments of historical debts with your creditors, so as to better your chances of business survival. The process takes a little over a month, and gives you more certainty about your company’s future.
If you have an eligible small business in financial distress, a Small Business Restructure (SBR) offers an option for you to renegotiate your historical business debts with creditors, when those debts are restricting your ability to effectively trade.
As part of the SBR, a compromise is made between the creditors and your company, which involves you agreeing to pay back your debt to the creditor, in part or in full, over a defined period. If you and the creditor agree that you only need to pay your debt in part, the remaining debt is written off.
During this process, the directors and management of your company remain in control of daily operations. The Small Business Restructure process is completed within approximately 36 business days.
Small Business Restructuring (SBR) emerged during the pandemic to help otherwise viable businesses deal with financial problems restricting their ability to trade successfully, offering a pathway to renegotiate debts significantly with creditors. The Small Business Restructure process is supported by the government (see Sept 2020 Treasury press release).
If your company’s in financial distress, a Small Business Restructure through Business Rescue Solutions offers:
Check your eligibility for Small Business Restructuring today. Take our short eligibility test
Implement the SBR process in just 36 business days. Appoint a Licenced Practitioner to create a restructure plan for approval by the ATO and other creditors, reducing debts and mapping a route to success.
Below shows the average small business restructuring outcomes we have achieved.
High debt levels and insufficient assets
$416,116 Average Debt
Creditors reduced and company is solvent
Debt Reduction
$90,001 Remaining Debt
Financial problems solved and Business saved.
Company Solvent
$326,115Debt Reduction
$380,000 Debt
$75,000 Debt
Debt Reduction
Before SBR
$380,000 Debt
$75,000 Debt After SBR
Debt Reduction
Our client operated in the production and installation of steel frames in Victoria. A director of the business attributed the failure of the business to the global steel shortage, the increase in costs of materials and the level of fixed costs, during a period of reduction in revenue (all factors largely arising out of COVID-19).
The business held cash at bank, vehicles, debtors and retentions at the date of the appointment, none of which were available under the restructuring plan.
Following the process, the Director was able to carry on the business without the significant debt levels and without the cost or burden of the business being placed into Voluntary Administration to reach the same outcome.
$260,228 Debt
$48,250 Debt
Debt Reduction
Before SBR
$260,228 Debt
$48,250 Debt After SBR
Debt Reduction
Our client was a cafe operating in regional Victoria with 22 employees. It suffered financially from the Victorian State Government lockdowns during the COVID Pandemic with a significant reduction in sales with little or no reduction in fixed costs.
The cafe was a profitable business before lockdowns and has since returned to trading priofitably, but the debt incurred during the COVID Pandemic threatened the business.
Following the process, the director could carry on the business without the significant debt levels and without the cost or burden of the business being placed into Voluntary Administration to reach the same outcome.
Industry | Debt before SBR | Debt after SBR | % Debt Reduced | % Return to Creditors |
---|---|---|---|---|
Construction | $380,000 | $75,000 | 80.26% | 18.95% |
Engineering | $542,000 | $100,000 | 81.55% | 18.50% |
Hospitality - Hotel | $425,000 | $75,000 | 82.35% | 17.62% |
Transport | $450,000 | $73,000 | 83.78% | 16.18% |
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Our expert will help you and we will create a plan of action for your business
78% Average Debt Reduction*
$326,115 Average Debt Forgiven by Creditors*
100% of Plans
Approved*
*Data is from SBRs we completed in 2023 and is accurate at distribution and indicative only. Actual results may vary. No future outcomes are guaranteed.
Michael Sukkar, the Assistant Treasurer of Australia in 2020, has been instrumental in implementing significant reforms to Australia’s insolvency framework. These reforms aim to support small businesses during challenging economic times, particularly in the aftermath of the COVID-19 pandemic.
92% of restructuring plans since 2021 have been accepted.
See the ATO’s position around SBR.
Minister for Housing and Assistant Treasurer
Director - Melbourne Office
Director - Sydney Office
Director – Sydney & Dubbo Offices
Director - Melbourne & Geelong Offices
A Small Business Restructure provides companies in financial distress with breathing space to develop a plan that will provide for the continuation of their business, and a better return for their creditors (compared to a hypothetical liquidation scenario).
In an SBR, a Restructure Practitioner assists the company to negotiate a plan with creditors to pay their historical debts.
The benefits of an SBR are, in brief:
Commonly, the most prominent warning sign your business is in financial distress is a large unpaid tax debt. Other signs can include ongoing losses, cash flow problems, overdue tax lodgements and difficulty gaining access to new credit. These signs all indicate that it would be beneficial to consult with Business Rescue Solutions about a Small Business Restructure.
For a simple eligibility check, complete our 30 second eligibility questionnaire.
To be eligible for Small Business Restructuring, we check that your company fits the following eligibility on the day on which our restructuring practitioner is appointed:
As part of the Small Business Restructure process, we also check that, at the time the restructuring plan is proposed to creditors, your company will have substantially complied with requirements relating to employee entitlement and tax filing obligations. A restructuring plan can’t be proposed until a small business has:
For full details on eligibility, see the ASIC website.
The Small Business Restructure process does not involve changes to how you run your business. Your company may, however, decide upon a number of other adjustments to your business to improve how it operates, including reducing costs, selling assets, changing its organisational structure, and so on.
The Small Business Restructure plan is to be presented to creditors within 20 days of the appointment of a Small Business Restructure Practitioner.
Creditors then have 15 days to respond to the plan, advising if they accept or decline the restructuring plan.
The entire process takes approximately 36 business days in total.
If the SBR plan is accepted, then it is binding on all unsecured creditors. This means that for the agreed timeframe of the plan, creditors who agreed to the arrangement can’t launch any other enforcement action relating to the recovery of debt or the winding up of the company. The result of this is that businesses can continue to operate during this agreed time period without the worry of court proceedings related to the debts subject to restructuring under the SBR plan.
An SBR will be considered terminated in any of the following circumstances:
Discover our exceptional testimonials, reflecting our commitment to small business restructure
Partner, Beyond Accountancy
I had a great experience working with the Rogers Reidy team.
They were very professional and provided a great deal of helpful advice using both an extensive knowledge of the law and experience in dealing with these situations.
It was clear we were in great hands, and we were delighted with the outcome achieved.
I would recommend their services to anyone.
Director
The team at Rodgers Reidy were extremely thorough as well as patient to manage us through the most challenging time in our over 20 years in hospitality; their transparency & realistic approach assessing our situation is what helped us keep our business going. We are extremely grateful for their experience & commitment to helping us continue to support our hospitality community.
Timber Supplies Company
Professional initial advice 100% commitment to the task on hand , ending with the perfect result for all concerned. HIGHLY RECOMMENDED
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