Basic Terms and Acronyms

There is a lot of terms we use in restructure here are some more than we use.

How late is too late?

This article provides business owners with insights into assessing the feasibility and timing for a business turnaround. It highlights the importance of identifying warning signs, understanding turnaround potential, evaluating challenges, the role of leadership, timing, seeking professional advice, and considering alternative options. These aspects are crucial in determining whether it’s too late to turn around a business.

Can I trade out?

Trading out of business difficulties requires a strategic approach, strong leadership, and the ability to make tough decisions. It’s about balancing immediate financial pressures with the long-term vision for the business. While the process can be challenging, it also presents an opportunity for businesses to reevaluate their operations, strengthen their market position, and emerge stronger.

What are preference payments?

Receiving a preference payment notice is a serious matter and should be addressed promptly and with the assistance of legal counsel. It’s important to understand your rights, the defenses available to you, and to engage cooperatively with the liquidator or administrator handling the case. Remember, each situation is unique, and the outcome can depend on specific circumstances and legal interpretations.

What information do you want from your reports

Your financial statements are more than just numbers – they tell the story of your business’s financial performance and position. They help in identifying strengths, weaknesses, opportunities, and potential threats. Regular review and analysis of these statements are crucial for strategic planning, securing financing, attracting investors, and guiding your business towards sustainable growth.

Insolvency FAQs

Insolvency can be a bit of a mystery. Understanding the basics makes sure you appreciate it’s complexity and impact on business.

What happens if your business can’t survive?

If your business is unable to survive, there are several potential outcomes and steps you might need to take. The specific path depends on numerous factors, including the severity of your business’s financial difficulties, the legal structure of your business, and your long-term goals.

What is a business turnaround?

A business turnaround is the first step in getting your business back on track. The turnaround process involves focusing on cash flow, profitability and viability.

Arranging a payment arrangement

Payment arrangements now require more input than in the past as the ATO is looking closely at viability and affordability

The restructure process

A restructure is customed to your business, it runs through a map to get the best possible outcome. The restructure is to improve your business and achieve viability.