Coronavirus has already had a devastating impact on businesses. And at this stage, it appears the health effects could last for at least six months.
Businesses have seen work just dry up, have faced difficulties accessing materials or have had customers already failing to pay debts owed. Further, many businesses have had to shut down as a result of recent lockdown measures.
So what can you do to minimise the financial effect of coronavirus?
Get professional advice early
The best thing to do is to get professional advice at an early stage and this is where we can help. We are here to help. Our partners and staff will work from our offices where possible, however, our systems allow us to work from home or remotely, if necessary.
You will at all times be able to contact us via usual methods. However, should you wish to contact our senior staff directly, please call:
Mark Pearce on 0408 402 685
Michael Dullaway on 0404 155 844
Andrew Heers on 0417 256 001
Neil Mitchell on 0478 126 885
We can assist you negotiate better terms with your landlord or even a rent-free period until your business is up and running. We have found that landlords are very receptive to negotiations with tenants when a tenant’s financial position can be set out for them showing the tenant cannot pay rent going forward.
Negotiate better terms or debt settlements with major creditors
In the current financial circumstances, your creditors will likely be very receptive to accepting a lesser amount to settle their debts. Especially when we can tell them that if you are forced to place your business in liquidation, they will receive a lot less or even nothing. By getting your creditors to settle their debts you free up cashflow to pay other amounts you owe, like employee entitlements and superannuation.
Negotiate a payment arrangement with the ATO
The ATO will currently defer all tax debts from early January 2020 onwards for a period of four months from the end of March 2020. However, you need to ask the ATO for this and we can assist. When your business is up and running again we can also assist with negotiating a payment arrangement with the ATO.
If coronavirus has had too big an impact on your business you can always consider voluntary administration and a deed of company arrangement to formally settle all unsecured debts. This is a process we can assist with to help you overcome your problems.
In a worst-case scenario liquidation of your business might be an option. But it is a last resort and should only be considered after all other solutions.
Contact us for advice and assistance