Date Posted: 13 May 2021
If you have corporate clients who are small business owners, they may be eligible for a Small Business Restructure (SBR), especially if they:
The SBR regime was introduced to provide small businesses with a simple and cost-effective way to restructure their business and settle their debts while remaining in control of the company and its operations.
With the help of a Small Business Restructuring Practitioner (SBRP), a company can propose a plan to creditors to restructure their existing debts. Creditors vote on the plan and, if accepted, the SBRP will manage the distribution of funds to creditors. The restructuring period takes 35 business days and the directors remain in control of the business during this time.
To qualify for an SBR, the company must:
Acting early may prevent potential issues from becoming insurmountable problems. An SBRP can help your clients diagnose core issues, allowing them to consider the options and develop solutions together before it's too late.
In our experience, clients are often time-poor, with crisis management pushed to the side in favour of core business operations. Working with an SBRP will benefit your clients by allowing them to design and implement a formal or informal restructuring plan that will save them money and improve the outcome of a restructure.
BDO's ASIC registered restructuring specialists are ready to support and work with you and your clients.
As a PPN member, BDO's Business Restructuring team offers a free one-hour initial consultation with you and your client. Our specialists can discuss all of the informal and formal restructuring options available.
This article was originally published by BDO. To view the original article, please click here.
* BDO in Brisbane and Consolid8 joined forces in February 2019 to drive and foster innovation in the delivery of business advisory services to their clients across all sectors. This content is from BDO's insights.