Changes were made to the Corporations Act from January 2021 that simplify the procedure for debt re-structuring by small businesses – i.e. those with debts not exceeding $1million.

It is an opportune time to look at the fundamentals because more and more small businesses now face financial pressure as a result of Covid, increased interest rates, and operating costs generally.

Most company directors should be aware of the dangers of insolvent trading and should keep a wary eye on that important aspect of the business.

There are various eligibility criteria that must be satisfied and we shall review these in our first meeting.

Once eligible, a small business restructuring practitioner must be appointed to prepare a restructuring plan and oversee its implementation although the directors remain in control of the business. This is one of the basic differences between this method and an company insolvency.

This method has proved to be successful in restructuring the finances of small businesses and you are welcome to contact us for further details