Overwhelmed by Business Debt? There Is a Way Forward
Running a business is tough, and when money’s tight, it can feel like you’re out of options. Whether you’re a sole trader, in a partnership, or have put your name on business loans, it’s easy to feel stuck when debts pile up.
You might have heard about something called a Small Business Restructure (SBR). It’s a process that helps companies sort out their debts and keep going. But if you’re a sole trader or personally responsible for the debt, there’s a different option designed specifically for you also known as a Part X Agreement.
Let’s break it down in simple terms.
Two Different Paths, One Shared Goal: Getting Back on Track
Both options, SBR and Part X are official, government-approved ways to sort out business debts and avoid more serious consequences like going bankrupt or shutting down completely.
They’re designed to:
- Help you make a fair deal to settle your debts.
- Give you a bit of space to plan without being chased for payment.
- Put someone experienced in charge of helping sort it out.
- Get everyone involved on the same page before moving ahead.
- Focus on helping you recover and keep working.
So What’s the Difference?
Here’s a quick comparison to help you figure out which might suit your situation:
Here are a few more key differences:
- Part X means someone helps take over the financial mess and sorts things out with the people you owe money to. Your personal assets might be part of the solution, depending on your situation.
- SBR allows company owners to stay in control while they work with a specialist to put a plan in place. It only deals with the business — not your personal assets.
- Part X is listed on a public record (kind of like a credit history), while SBR is quieter, only noted in company records under ASIC.
- Part X can take a little longer. SBR is usually quicker — about five to seven weeks.
When a Part X Might Be the Right Fit
If you:
- Want to sort out your debt without going bankrupt,
- Are being chased for payment or legal action,
- Signed your name on business loans (i.e. personal guarantees) and things aren’t going well,
- Still want to keep working or running your business…
Then Part X could be the right choice for you.
We’ve helped business owners across all kinds of industries sort out their debts through this process, and many of them are still trading today, without that heavy stress on their shoulders.
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At de Jonge Read®, we’ve:
- Helped sole traders stay in business while paying back what they can afford.
- Worked with directors to fix their company’s finances and deal with their personal guarantees.
- Guided partnerships to close down safely and fairly, with clear plans for everyone involved.
We understand how overwhelming this can feel. Our job is to take the stress off your shoulders and show you the way forward, making sure you understand your options and helping you choose the path that gives you the best shot at a strong financial future.
If business debt is keeping you up at night, talk to us. You don’t need to have all the answers, that’s what we’re here for. Whether a Part X or an SBR is right for you, we’ll help you figure out the best path and walk you through it step-by-step.
Contact our team at de Jonge Read® today and let’s talk about how we can help you sort it out and move forward. The earlier you act, the more options we’ll have to get you a better result.
Did you know?
Phoenixing is another name of business restructure. Read more about business restructures and when this can be an option for you.
