Will Melbourne’s Reopening Bring Pleasure or Pain for Small Business?
From 11.59pm tonight (27/10/20) Melbourne is reopening for business with retail, hospitality, entertainment and many small businesses allowed to return to work.
And whilst this reopening will come as a celebration for some, there are many businesses that will find that, after such a long period of closure, and with the new health requirements imposed upon them, that the uplift that would come from being able to reopen, simply isn’t there.
It is important that businesses look at the whole picture when trading, including not only the revenue coming through the doors but also the potential liabilities being incurred, and the businesses capacity to pay those liabilities.
Whilst the current insolvency relief measures are in place to protect directors in some instances against the personal liability associated with trading a company whilst insolvent, those protections are due to finish on 31 December 2020. There is also a school of thought that those protections would only exist if the insolvent company is placed into external administration by the end of the year.
If businesses owners are at all concerned about the solvency of their companies, now is the time to discuss the future with a Restructuring Insolvency and Turnaround Professional to see what options are available and more importantly what pre-requisites need to be met before some of those options can be put in place.
At SMB Advisory we offer free initial consultations in which we can detail the available options for distressed businesses and how we can work towards a mutually beneficial outcome for all stakeholders. Contact us on 1800 SMB ADVISORY or at email@example.com to learn more.