Insolvency

Expert solutions based advice and support

How Do I Know When My Business Has Become Insolvent?

If your business is facing financial difficulty or insolvency, you need the support of a highly skilled and affordable business advisor. At Oldhams Advisory, we specialise in helping small to medium-sized businesses navigate financial difficulty or insolvency. We work to secure the best possible outcomes and mitigate the negative impact that insolvency can have on you both personally and professionally.

Insolvency is when your business is unable to repay its debts in the required timeframe.

Many businesses may face periods where they have significant debt and reduced cash flow to clear them. Insolvency occurs when it is no longer possible to renegotiate payment of these debts, enter into a debt agreement or secure additional funding to continue operations.

The experts at Oldhams Advisory can conduct an in-depth review and analysis of your business prior to declaring insolvency. Doing this may help provide clarity surrounding your financial situation and may present opportunities for course correction rather than pursuing insolvency.

What Happens When A Business Files For Insolvency?

Once you declare insolvency, a licensed insolvency practitioner (IP) will be appointed to take control of your company. They will itemise all your assets and sell them in order to raise funds towards the clearing of your debts – this may be in the form of a liquidation or receivership or voluntary administration.

For Sole Traders or Partnerships, the results can be significantly more distressing and lead to the loss of personal assets such as your home. There are sometimes caveats to this, so it is always worthwhile speaking with an expert.

What Are The Consequences Of Becoming Insolvent?

Aside from the closure of your business and enforced sale of remaining assets, what does insolvency mean for business owners? Interestingly, declaring insolvency does not prohibit you from starting a new business however, you will likely face difficulties in getting funding.

In the event that you have provided a personal guarantee, creditors may have grounds to continue pursuing you for the remaining debt. In some instances, if the conduct of a business owner is seen to have been inappropriate during the running of the business they may face claims by a liquidator, or be banned and restricted in their capacities for future endeavours.

So long as your business is structured correctly as a separate legal entity your personal assets should be protected from personal liability legislation during the insolvency process.

What Can I Do to Avoid Liquidation

Options

  • Negotiate with Creditors
  • Business Restructure
  • Voluntary Administration

How We Can Help

At Oldhams Advisory we have decades of experience in both high-level accounting and business management. This combination of skill sets provides us with unique insights and the ability to undertake complex problem solving for businesses facing insolvency.

We understand the overwhelming and emotional toll these situations present to business owners and offer genuine, honest support. We recognise the need for total transparency and a no-nonsense approach that helps clients feel confident and equipped to navigate their situation to the best possible outcome.

Ideally, before insolvency is even a remote possibility, our clients would engage our expertise for services related but not limited to:

  • In-depth business reviews and analysis
  • Course correction
  • Enhanced profitability
  • Strategic planning
  • Business structuring
  • Project management and advisory
  • Business mentoring
  • Mergers and acquisitions

We know that insolvency is the last resort and a wholly unwanted outcome for any business owner. Our aim is to help business owners and give them the tools needed to create sustainable business practices that support long-term profitability and growth. 

We’re Here For You

If you desire to work with a business advisor that truly has both your personal and business interests at heart then you need Oldhams Advisory. We are passionate about helping Australian business owners thrive and create the ideal business structure that supports their dreams.

With decades of experience behind us in businesses of all sizes and industries we remain calm and dedicated even in the most challenging of circumstances. When you choose to work with us you are choosing a committed and highly skilled advisor that will stay alongside you at all times.

For personalised, professional and affordable advice related to insolvency or any other aspect of business, contact Oldhams Advisory today on (07) 3188 5400.

Testimonials

Wow, I wish I’d known Glen when I was trying to start my business last year – it would’ve saved me a lot of trouble! Now that I have Glen onboard, his expert advice has helped me steer my business in a direction I never would have imagined and business is great. I couldn’t have done it without you, Glen. Thanks a million!

M. Birkdale

My business was in a downward spiral when I reached out to Glen for help. He restructured my entire business and business is picking up again. Glen has also provided very sound and practical advice on some pretty big decisions I needed to make. I’m looking forward to working with Glen as my business continues grows!

P. South Brisbane

Glen’s ability to see the “big picture” has helped me grow my business bigger than I ever thought was possible. His continued guidance makes all my business decisions so much easier!  Thanks, Glen. Cheers.

A. Hawthorne

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