7 Benefits of a Small Business Restructure – when utilized appropriately, Small Business Restructuring Plans (SBR Plans) function as a relief mechanism for businesses profoundly affected by external factors beyond the control of their directors. They serve as a means to restore a business’s stability following unexpected financial setbacks, such as substantial bad debt, trading limitations, or disruptions in the supply chain.
For individuals considering negotiations with the Australian Taxation Office (ATO) regarding payment arrangements, it’s advisable to contemplate whether opting for an SBR Plan would better safeguard the long-term interests of the business and its stakeholders.
1 Timely Intervention:
SBR Plans enable a business to approach creditors for assistance at the first indication of financial distress.
2 Simplicity:
SBR Plans are designed to be streamlined, concise, and subject to fewer regulations.
3 Debtor-in-Possession:
Throughout the process, directors retain control over their business.
4 Creditor Moratorium:
This prevents creditors, including the ATO, from pursuing actions to recover owed funds or assets.
5 Protection:
Directors are shielded from personal liability related to insolvent trading and from individually repaying the entire company’s tax debt.
6 Cost Efficiency:
The process is structured to minimize access costs for small businesses.
7 Expert Guidance:
Qualified Small Business Restructure Practitioners oversee the process, ensuring compliance and offering valuable protection for directors.
