Would you recognise the red flags of insolvency?
Would you or your business clients recognise if they’re at risk of becoming insolvent?
Some signs of insolvency are obvious, such as having insufficient cash-flow to pay wages, taxes, superannuation and bills. But others are less obvious, including director disputes, the physical deterioration of business premises, poor books/record keeping, and a trend of losing clients. Below is a handy infographic that gives 13 warning signs of business insolvency.
Insolvencies are on the rise. Businesses are faced with an extraordinary number of financial pressures because of local and global disruptions, and in recent months we’ve been contacted by numerous business owners/directors or their accountants because of financial distress. We are undertaking a growing number of Small Business Restructure plans across a wide range of industries and have handled various Voluntary Administrations that have resulted in a successful Deed of Company Arrangement (DOCA). It’s meant directors have been able to save their business and pay off their company’s liabilities, in full or in part, and been able to move forward.
The key message is: act quickly. If your business or that of your client is exhibiting any warning signs, don’t hesitate to contact us for an obligation-free consultation. The sooner you act, the more solutions there are. It gives you or your client the best chance of being able to resolve the issues.
Since 1984, thousands of businesses have trusted Jirsch Sutherland to help develop solutions to handle financial distress.
Why Jirsch Sutherland
Since 1984, we have built our business on empathy and integrity – qualities that have led to us being recognised as one of Australia’s leading national insolvency players and trusted for over 30 years
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*The Small Business Restructuring Process is accessible to incorporated businesses with liabilities of less than $1 million. To be able to propose a deal the business must have paid all employee entitlements and made all tax lodgements.