Coronavirus has already had a devastating impact on businesses and it appears that the health impact could last for at least six months. The aftermath will be felt by businesses for years after this.

Pearce & Heers is not just an insolvency firm. For years we have specialised in helping businesses deal with financial problems in order to assist them in avoiding liquidation. So if your business is in trouble, who better to call?

How can we help?

We have prepared a coronavirus business strategy toolkit. Using these strategies we can assist you with: 

1. Cost reductions, particularly around staffing, rent and future orders.
2. Negotiating rent reductions or a rent-free period with your landlord.
3. Providing advice regarding dealing with your bank, including:

• Changing loans to interest only;
• Possibly freezing all loan payments; and
• In a worst-case scenario, if you have a business bank debt shortfall, negotiating a settlement of any personal guarantee.

4. Negotiating debt settlements or payment arrangements with trade creditors you cannot pay.
5. Taking advantage of measures which are being offered by the ATO including:

• Deferment of business and personal tax obligations; and
• How to best structure your business to capitalise on PAYG Tax credits and other ‘incentives’ the ATO is offering.

6. Ultimately, minimising ongoing costs so you can save surplus cash to help navigate what will be a long and difficult period.

What else do you need to be aware of?

We can also assist with identifying and minimising risks to directors personally, which can include:

1. Advising on what action you should take to minimise the future risk of ATO Director Penalty Notices;
2. Reviewing other risks associated with your business and coming up with risk minimisation strategies around:

• Any guarantee you have given to your landlord or bank;
• Personal guarantees given to trade creditors or financiers; and
• What transactions you can and cannot enter into if your business is in financial difficulty.

Contact us for advice and assistance

If coronavirus has affected your business, you must act quickly to minimise the impact, so please contact Pearce & Heers at our Brisbane or Gold Coast offices for an initial obligation-free consultation.