Trends: Rising SME Insolvencies
Over the past 12 months, Australia has seen a sharp rise in small-to-medium enterprise (SME) insolvencies. Several factors are driving this trend: For SMEs, the implications are clear: cash flow monitoring, debt management, and early engagement with advisors are more critical than ever. For creditors and financiers, it means being prepared for more claims, disputes, […]
Myth-Busting: 5 Common Misconceptions About Liquidation
Liquidation is a highly misunderstood process. Here are five myths I regularly encounter in conversations with directors and creditors: 1. “Liquidation means fraud was involved.” Not true. While misconduct can play a part in some cases, many businesses fail due to external pressures like economic downturns or industry disruption. 2. “Employees always lose everything.” Employee […]
Explainer: Administration vs Liquidation
When a business faces financial distress, directors often ask me: “What’s the difference between administration and liquidation?” It’s a vital distinction. Voluntary administration is a temporary process where an independent practitioner steps in to review the company’s affairs. The goal is to see whether the business can be saved, restructured, or sold as a going […]
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