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Business Planning and Restructuring
It is a common misconception that for businesses that are unable to pay their debts and meet other financial obligation, insolvency via administration, liquidation or receivership is the only option. If you answer yes to any of the following questions, business restructuring may be able to help you get your business back on track.
Not enough cash to meet your payment obligations?
Does your business have poor profitability?
Do you have any outstanding debts to the ATO?
Do you have any outstanding payroll tax debts?
Do you have any outstanding workers compensation payments?
Are you encountering problems with your suppliers?
Do you have trouble collecting money owed by your customers?
The restructuring process is generally considered to be "informal" as it is not strictly governed by legislation. The main purpose of restructuring a business is to preserve the assets of the business and to work towards ensuring the business survives and ultimately flourishes.
One of the main benefits of a restructuring program is that it is private. Formal administration and receivership procedures are generally widely publicised, which can often result in a more difficult negotiation process with creditors and customers of the business and can also alert the competition to a major opportunity in the market place.
At PSK Corporate Advisory we are able to facilitate this process with a range of services including:
Negotiating with lenders to reschedule debt repayment arrangements
Organising additional facilities, such as a line of credit, overdraft or consolidating debts over a longer term to smooth out cash flow
Providing advice regarding the reorganisation of your operation, in particular how to cut costs and/or reallocate resources
Focusing on generating cash flow by working with debtors to bring in monies that are owed and reducing any unnecessary expenses; and
Negotiating with major customers to increase prices, shorten payment terms and even increase orders.