What a year it has been! We would like to thank all of our referral partners for their continued support this year, and to wish everyone a safe and happy holiday season. As a firm we are so proud that you trust us to help your clients, and we truly value our referral partner relationships.
While we should all be enjoying ourselves and spending time with our families, this time of year can be challenging for many businesses.
Not everything goes on Christmas holidays…
Many businesses traditionally close over the Christmas period. Other things though do not go on holidays. For example:
- Wages, rent on premises, loan payments and lease payments still need to be made.
- Creditors days are still ticking over, with accounts getting closer to their due date.
- In our experience many businesses feel the cashflow crunch over the holiday season.
The New Year Hangover…
For others, the holiday season can be the cashflow peak for the business. For these businesses ATO reporting and GST payments might be the New Year’s hangover, considering:
- Many business owners may take the opportunity to catch up on overdue creditors.
- Some owners draw funds or wages that they had not been able to take in leaner times.
- ATO and other creditor payments fall due after the cashflow peak has been and gone.
- A slump in sales is common once clients get their credit card bills.
The next uplift in sales could be months away.
Time to breathe, think and make decisions…
Many business owners may also finally have time to breathe and think strategically while on their Christmas break. This can often lead to decisions about:
- Expansion plans and the acquisition of new assets.
- A change in business structure or financing.
- Whether the owner still has passion for the business or whether it is time to move on.
- The viability of the business in the coming year.
New Year’s resolutions…
Any business owner facing any of these issues will benefit from obtaining professional, independent advice. This may mean reviewing the structure of the business or adopting a strategic solution to address any issues. de Jonge Read can not only assist with these matters, but can also facilitate debtor finance or other short-term funding solutions by working with our strategic finance partners.
Let us help your client to ensure they have a solid plan B for 2022!
Should you have clients or associates that you know are struggling with financial issues or need assistance in reviewing their business affairs in preparation for what’s around the corner, our team of Strategists would be pleased to discuss options that are available on how to best design and implement insolvency strategies. Contact us now on p. 1300 765 080 | ua.mo1734792797c.arj1734792797d@ofn1734792797i1734792797
Did you know?
Phoenixing is another name of business restructure. Read more about business restructures and when this can be an option for you.
