It’s easy to get confused when it comes to insolvency, as the term is often thrown around when referring to a business or person running out of money.
Our headquarters are based in Sydney, NSW but we have staff across Australia ready to help you no matter where you or your company is. Corporate Lifeline has already rescued hundreds of companies and also helped many more through their most stressful financial times and through insolvency. We offer a number of solutions to restructure your company to help you turnaround / resolve your financial issues.
When a company is unable to pay all debts when they are due, then it’s considered insolvent. It’s quite easy to see how this happens. For nearly every business, the financial model is quite simple. Money is earned through cash and revenue, and it’s then paid out through expenses and outgoings.
It’s important that the money going out never exceeds the money coming in, or the company can run into problems. Debts start to accrue, whether as a result of unpaid salaries, owing taxes or unpaid bills. Then, the business becomes insolvent.
If a business is going into debt, then there’s a good chance you’ll be able to identify some of the early warning signs. Once these have been identified, you can start to put strategies in place to turn the operations around and possibly save the company. While it’s not always possible to return the business to normal operations, there’s a good chance that insolvency can be avoided.
The key is taking action as soon as the initial signs of trouble start to appear, instead of leaving the issues to fester over time. Doing so is only going to be detrimental to you, your business and your employees.
It’s important to note that company directors have an obligation to seek advice and stop trading whilst the business is insolvent, in order to avoid personal exposure.
We understand that admitting your business has a problem can be tough, and it’s often an extremely personal matter.
You may have developed the business over a period of several years or decades and going insolvent can represent a personal failing. This is an opportune time to engage the services of a professional.
Corporate Lifeline is a professional and experienced organisation based in Sydney, with staff located all over Australia. We’re here to work closely with you and your company, and guide you through the often complicated processes of liquidation. We can also walk you through a number of other issues that you’ll want to understand, such as the risk of insolvent trading.
You’re able to talk with an experienced insolvency practitioner/registered liquidator straight away and you’re given a free quote with no hidden costs or other surprises. What’s more, we also handle the often difficult process of working with your creditors.
Waiting is commonly the biggest issue, so if you’re experiencing problems with regards to your business don’t hesitate to reach out to us. Insolvency doesn’t have to be the end of the business.