When a company is facing the prospect of liquidation, the experience for its owners can be both financially and emotionally taxing. They are often stumped as to how to manage the situation without losing control of their finances and assets.
Insolvency Services Australia (ISA) has compiled some tips for companies to assist them in avoiding liquidation
One of the first steps that financially struggling companies should take is to examine their assets and identify any potential cash inflow opportunities. If your company has items that could be sold at a high price, you should consider putting them on the market in order to generate funds which can be used to repay any outstanding debts.
Similarly, your company may have some surplus stock that could be sold. You could even sell the physical property where your company is located or sub-let part of your premises. Selling such assets allows the business to continue operating while paying off debts with the money obtained from selling existing possessions.
Another strategy is to review your company’s products and services to see if they are actually adding to the business’s bottom line. If they are not profitable, perhaps it is time to replace them with products and services that are more likely to bring in more money.
Seeking professional financial advice is another helpful way to prevent company liquidation.
ISA can help you if you are looking to avoid company liquidation and need professional advice. If you have undertaken all of these steps but still find that your company is in a dire financial position where liquidation is inevitable, ISA can assist with advice and liquidation services.
If liquidation is indeed the only option left, ISA consultants are experts in the field and will manage your case professionally from start to finish. Contact them today on 1800 003 883 – ISA has a fully licensed liquidation practitioner available to assess your situation and can provide impartial advice on whether or not your company requires liquidation.