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But this doesn’t have to be the case, and liquidation isn’t the end of a business.
Seeking help early means working with a professional who will be able to assess all possible options for your business, and whether it’s truly necessary to call it quits. But first, let’s take a look at what liquidation actually involves.
In nearly every case, liquidation boils down to a cash flow issue. When it’s no longer possible for a company to repay debts, and there are no remaining sources of available credit, it’s often necessary for the company to go into liquidation.
Whether by a court order or if it’s a decision made voluntarily, the company is put into liquidation. At this stage, a specialist called a liquidator is brought in and put in charge of the process. They investigate the financial affairs of the company and identify what assets can be sold off to help repay the creditors.
But businesses won’t always reach this stage, and by taking action early they could avoid some of the problems associated with liquidation.
It’s important to think about this early, as directors can often breach their duties under the corporations act, in what is called insolvent trading. This is when a director becomes personally liable for any debts they incur whilst the company was considered insolvent.
As with many problems, taking action sooner rather than later is the best way to deal with any cash flow shortages a business is facing. By engaging the services of a professional who can provide useful financial help, business owners may find that liquidation is just one option available to them.
Leaving the financial problems of the business to fester is only likely to make the issues harder to deal with.
In the event of liquidation, it’s certainly beneficial to have capable liquidators on hand to work with you throughout the process. They’re there to ensure that you’re able to easily wind up the operations of the business and tie up any loose ends.
We understand that admitting the business has a problem can be tough, and it’s often an extremely personal matter.
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, registered liquidator straight away and you’re given a free quote with no hidden costs or other surprises. What’s more, we can 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.
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