Running a business isn’t easy, especially when the bills keep piling up, income is slowing, and you’re feeling the pressure from the ATO, lenders, or suppliers. If you’re finding it hard to stay on top of things, you’re not alone. This guide is here to help you understand what’s happening, what your options are, and what steps you can take before things get worse.
It introduces the idea of pre-insolvency, a critical window where your business may be showing early signs of financial distress but hasn’t yet hit the point of no return. Acting during this stage can open up far better outcomes, from saving your business to protecting your personal assets.
Recognising the Signs Early
If your business is starting to feel the pinch, bills are building up, cash is tight, and stress is creeping in, what you do next matters most.
That pressure you’re feeling might mean your business is in what’s called pre-insolvency, and this stage is crucial. It’s the time where you’re still in control and still have options.
What Is Pre-Insolvency in Simple Terms?
It’s when things aren’t going well financially, but your business is still running. You’re juggling bills, maybe missing payments, or struggling with tax or loan repayments, but you haven’t had to shut the doors.
You might notice:
- ATO debts are growing and you can’t catch up
- You’re getting overdue notices or legal letters
- The business is surviving week to week
- You’re using personal savings or credit cards to get by
It’s incredibly stressful, but the good news is this is the best time to act.
Why Acting Now Makes All the Difference
The earlier you take steps, the better your chances of:
- Having more options to fix or wind down the business on your terms
- Protecting personal assets before they’re at risk
- Avoiding formal legal processes like liquidation or bankruptcy
- Avoiding the stress and detrimental effects this will have on you and your family
We’ve helped hundreds of business owners in exactly this situation. With the right support and advice, there’s often a clear, manageable path forward.
Why You Should Speak to a Pre-Insolvency Advisor Not a Liquidator
One of the biggest mistakes we see is business owners going straight to an insolvency practitioner, like a liquidator or administrator, without understanding their full options.
Here’s the key difference:
- Insolvency practitioners are legally required to act in the best interests of the people your business owes money to, not you.
- A pre-insolvency advisor, like de Jonge Read®, works for you. We help you understand your legal position, explore the full range of options, and avoid rushing into a decision that could leave you worse off.
We’ll help you make informed choices and stay in control of what happens next.
How We Help Business Owners
At de Jonge Read®, we specialise in helping directors and business owners navigate financial difficulty with confidence and clarity.
We help you:
- Understand exactly where you stand, in plain language
- Explore your options to restructure, recover, or step away safely
- Protect what matters — your livelihood, your family, your future
This isn’t a one-size-fits-all process. It all depends on what your goals are and what outcome you would like to achieve. You’ll then get tailored advice from experienced professionals who genuinely care about your outcome.
You Don’t Have to Wait for Things to Get Worse
If your business is under pressure, now is the time to act.
You don’t need to have all the answers — that’s what we’re here for. Whether you’re trying to turn things around or step away from the business, we’ll guide you through the process so you can move forward with confidence.
Call de Jonge Read® today for a confidential, obligation-free chat. The earlier we talk, the more options you’ll have and the better the outcome we can help you achieve.
Did you know?
Phoenixing is another name of business restructure. Read more about business restructures and when this can be an option for you.
