Is Your Small Business Facing Financial Challenges?
What is Small Business Restructuring?
Small Business Restructuring (SBR) is a strategic initiative designed to help small businesses manage and overcome financial difficulties. This government-legislated process aims to reduce debt, improve cash flow, and create a roadmap for business recovery and long-term success.
Key Aspects of Small Business Restructuring:
Business owners appoint a corporate adviser, like Avante Partners, who collaborates with the company to ensure that the business meets all the requirements of the SBR legislation to qualify for this process. It is important to obtain advice from an experienced corporate adviser who has in depth experience in this restructuring process.
Avante Partners works with the business to assess its financial situation and formulate a detailed restructuring plan. This plan outlines the steps required to address debts outstanding, improve cash flow, and restore the business to financial health. The plan is then presented to the Australian Taxation Office (ATO) and any other unsecured creditors (if applicable) for approval.
Once the restructuring plan is developed, it is presented to a restructuring practitioner for review and discussion with the appointed corporate adviser. The plan will then require approval from over 50% (by value) of unsecured creditors. During this period, any creditor actions against the business are put on hold. Upon approval, the plan is implemented, allowing the business to restructure its debt, improve operations, and continue trading.
Benefits of Small Business Restructuring:
Business owners remain in control of their company throughout the restructuring process, ensuring they can make strategic decisions and guide their business toward recovery.
During the restructuring process, legal actions from creditors are halted, providing the business with breathing room to reorganise and implement the approved plan.
The restructuring plan often includes debt reduction strategies and the establishment of manageable payment schedules, easing the financial burden on the business and enabling it to focus on recovery.
The SBR allows businesses to continue trading, retain employees, and maintain operations, which is crucial for long-term viability and growth.
The SBR Process
Initial Assessment:
The business conducts an assessment of its financial health and identifies key issues affecting cash flow and debt levels. This can often be prompted by debts owed that are causing concern to the directors of the company.
Appointment of a Corporate Adviser:
A qualified accountant specialising in the assessment of small business financial issues, like the staff at Avante Partners, is appointed to guide the business through the entire process.
Plan Development:
Avante Partners collaborates with the business to create a restructuring plan that addresses financial challenges and outlines the steps for this process leading to business recovery.
Creditor Approval:
The restructuring plan is submitted to the ATO and other unsecured creditors (if applicable) for approval. During this period, creditor actions are halted.
Implementation:
Upon approval, the restructuring plan is implemented, enabling the business to reduce debt, improve cash flow, and continue trading.
Avante Partners is a specialist advisory firm dedicated to providing professional guidance to business owners. Our advisory staff are qualified accountants with memberships in prestigious organizations like CA, IPA or CPA. We provide strategic and practical solutions for businesses facing financial issues or operational disruptions.
We provide a range of business solutions, including Business Workouts, Capital Raisings, and Asset Protection. Our role is to identify options, develop comprehensive plans, and execute these plans to deliver the best possible outcomes for our clients.
Business Workouts involve the assessment of all possible scenarios for your business and evaluating potential outcomes. This process helps to map a clear path forward when dealing with financial distress or other significant issues.
Avante Partners provides access to a variety of funding providers for capital raising purposes. This includes debt, equity, and hybrid funding providers, giving businesses a comprehensive range of options to secure necessary funds.
Yes, Avante Partners provides services that can protect individuals through business structures and registered arrangements. This ensures your assets are secure amidst any business challenges.
If you’re interested in our services, please feel free to get in touch via our ‘Contact Us’ section on our website. We are always ready to assist you in addressing your business needs.
Our advisory staff are all qualified accountants that specialise in this niche area. All our advisory team are members of CA, IPA, or CPA, and some have reached the highest level of membership (Fellow) within these organisations.
No matter how big or small your business, Avante Partners can review your position and provide you with a range of solutions. Our expertise lies in delivering options to company directors encountering financial issues or other significant matters that disrupt their business operations.
You will have the Principal adviser (a qualified accountant) as your primary contact point. Your file will be professionally managed throughout the process, which includes regular reviews from our General Manager to track file progress following your continuing discussions with your Principal adviser.
“Running a Small Business in Australia: What You Need to Know.”
This comprehensive eBook aims to provide you with essential information and guidance on managing a small business here in Australia.
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