Small Business Restructuring

A Path to Recovery with Avante Partners

Get the industry expert advice for your business restructuring needs.

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:

Appointment of a Corporate Adviser:
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.
Development of a Restructuring Plan:
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 outstanding debts, 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.
Creditor Approval and Implementation:
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:

Director Control:
Business owners remain in control of their company throughout the restructuring process, ensuring they can make strategic decisions and guide their business toward recovery.
Protection from Creditor Actions:
During the restructuring process, legal actions from creditors are halted, providing the business with breathing room to reorganise and implement the approved plan.
Debt Reduction and Manageable Payments:
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.
Continuity of Operations:
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.

Why Choose Small Business Restructuring?

Engaging in a Small Business Restructure offers a lifeline for small businesses facing financial distress. It provides a structured and supportive approach to resolving financial challenges, allowing businesses to regain stability and set the stage for future growth. With the guidance of experienced restructuring professionals like those at Avante Partners, businesses can navigate the complexities of the SBR process and emerge stronger and more resilient.

Frequently Asked Questions

Who are Avante Partners?

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.

What services does Avante Partners provide?

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.

What is meant by 'Business Workouts'?

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.

How can Avante Partners assist with Capital Raising?

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.

Can Avante Partners help with Asset Protection?

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.

Does Avante Partners provide accounting or tax services?

No, whilst our advisers are qualified accountants, Avante Partners is a specialist adviser so we do not provide accounting or tax services. However, we collaborate with your accountants and lawyers, as required, to ensure the best outcomes for your specific situation are achieved.

How can I contact Avante Partners for their services?

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.

What qualifications do Avante Partners’ advisory staff hold?

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.

What kind of businesses can Avante Partners assist?

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.

How does Avante Partners handle clients’ situations?

At Avante Partners, we take an all-inclusive approach to our clients’ situation, providing them with strategic and practical options with a clear pathway forward. We ensure you are provided with professional advice that considers all potential issues.

Is Avante Partners a Liquidator?

No, Avante Partners are not liquidators. It is important to understand the difference between a Liquidator and an adviser. The Liquidator legally acts for unsecured creditors (those parties that are owed money), whereas an adviser acts solely for the individual business owner. Avante Partners only acts for individual business owners or company directors.

How do you support me once I engage your services?

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.

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