Actually, to clarify terminology first, a business does not go bankrupt. Individuals become bankrupt and companies become insolvent or go into liquidation. So, if your business is in financial difficulties and cannot be restructured or sold, it could become insolvent and be liquidated.
Liquidating a company is a big decision but there are plenty of options available if you pay attention to the early warning signs and seek advice from Insolve’s qualified experts.
Don’t just hope these early warning signs will disappear! Depending on your business structure, putting your head in the sand could mean you end up bankrupt because your business has become insolvent.
These are some warning signs you should seek advice about:
- Clients not meeting your payment terms, especially clients who normally pay on time
- Clients who normally pay without fuss are suddenly knit picking your product or service
- Your biggest client has gone into liquidation
- Cashflow is tight and you find yourself needing to prioritise which accounts to pay
- You don’t have the cashflow to put superannuation aside this quarter, but you should be ok to catch up next time…
- GST, payroll tax – all of those payments are due, and you don’t quite have the cashflow
- You’re thinking about reducing your insurance coverage
- You haven’t paid yourself…again, let alone put superannuation aside
- Part of your business is doing fine but another part has really slowed down
- Your competitors are getting plenty of work, why aren’t you?
- You’re seeing new information and terms on invoices you receive…. are you keeping up with changes to regulations for you own invoices?
Talk to Insolve about options to help protect and grow your business. Our advisors are qualified and experienced – they want your business to thrive, or if it can’t they want it dealt with properly so you can put the issue to bed and start the next phase of your life.
Insolve can help you with the following protection and growth strategies:
- Safe harbour – it is technical but provided you have met all your obligations Directors may have the option of Safe Harbour protection.
- Have you updated your credit terms?
- Have you renegotiated your debt? Seek some expert, qualified advice first.
- Have you dealt with an advisory consultant already and not seen a change or not been comfortable with the ethics of their advice? Remember, it’s your business, you are on the hook; you might have been ripped off by an unscrupulous advisor.
Call Insolve on 1300 669 914 – don’t wait until it’s too late.