Our expert advice will save your business thousands

Small Business Restructuring Success: Coffee Machine Wholesaler & Repairer

Case study: COVID-impacted business operating in the electronic appliance retail & repair industry

SBR put us back in control of our coffee machine wholesale and repair business, finances and livelihood. No more stress, anxiety and sleepness nights.

Business owner

Key savings for this business in distress

550

This business saved $550K off their tax bill

18.82

Creditors agreed to receive 18.82¢ in the dollar

81

Company was able to slash 81% off their debts

6

The process completed within 6 weeks

Simple with excellent results

Small businesses are choosing SBR for its simplicity and effectiveness with real results.

Debt Before SBR
$677,510
Debt After SBR
$127,483
Debt Saving
81%
IN DEPTH

The challenges, process and solution

A transparent look into the situation, process and outcome for the client and stakeholders

01.
Background

Challenges

  • Trading Trading restrictions imposed by the Covid-19 pandemic:
  •  Lockdowns
  • Poor economic conditions impacted the business performance.
  • Faulty products from Spain which increased the repair cost massively (under warranty)

Reasons for hope

  • The Company implemented measures to enhance project efficiency through regular cash flow projection and monitoring, which includes cost reduction efforts, among other strategies.
02.
Debt Profile

The company had debts amounting to $ $550,027. A majority of the debt owed to the ATO.

03.
SBR Process & Proposal

The business owners engaged us to help with their situation. With our guidance and support through the SBR process, a compromise plan was proposed:

  • $138,000 over 18 monthly contributions.
  • The plan was accepted by creditors.
04.
Outcome

Overall the plan was a success for clients who saved thousands off their ATO bill and creditors were able to obtain a return instead of nothing all.

Return for creditors

  • 18.82 cents in the dollar (SBR) versus nil if liquidation had been chosen

Company savings

  • $550,027
SIMPLE. PROVEN.

A simple path forward for distressed businesses

BUSINESS OWNERS, COMPANY DIRECTORS

Since the introduction of SBR in January 2021, many distressed business owners have contacted us to take advantage of SBR for debt relief and get creditors off their backs.

 

ACCOUNTANTS, LAWYERS, ADVISORS

Hundreds of accountants, lawyers and advisors trust our expertise and have recommended and referred to us their small business clients who are struggling with debt and financial stress. 

They know and trust us to deliver the right solution to help their clients get the relief they need financially and mentally. 

 

Less stress from creditors

Put the days of being chased by creditors behind you

Comparably low cost + quick

SBR is cheaper, simpler & quicker than other solutions which can take months

Improve cash flow

Eligible small businesses can benefit greatly by cutting thousands from their debts

Slash your tax debt

Freedom

Scissors cutting tax letter

What our clients say about us

Our numbers only tell half the story, below are comments from recent clients we’ve helped

SBR FAQS

Your questions answered

What is a restructuring plan?

It is an agreement between your company and your creditors. There is no set plan, which means they are able to be very flexible. Usually, these plans involve a one-off contribution from someone such as a director, which is paid to creditors by the restructuring practitioner.

Who prepares the SBR plan and how long is the process?

Your SBR practitioner, in consultation with you, has 20 business days to draft a restructuring plan that your creditors will vote on (This can be extended by up to 10 business days). Once presented, your creditors then have 15 business days to accept or reject it. While they are deciding, your business can continue to trade.

What types of debt are included in the SBR plan?

All unsecured debts that were incurred prior to your company entering restructuring are included, with the exception of employee entitlements that are not yet payable, such as leave and redundancy payments. If your company incurs debts after it enters restructuring, these debts do not form part of the plan and need to be paid off outside the plan.

Do all employee entitlements need to be paid?

Yes. The business must pay any employee entitlements which are due and payable before a
plan can be proposed to creditors.

How do I know if my business is eligible?

Eligibility must satisfy these conditions:

  • Total debts not exceeding $1 million
  • Be insolvent or likely to become insolvent
  • Employee entitlements are up to date
  • Tax Office lodgements are up to date. Note you can still have money outstanding
  • The company must not have previously used the small business restructuring process or the simplified liquidation process within the past 7 years

Use our Eligibility Checker

What if my business is not eligible?

There are alternative options such as:

  • Voluntary Administration
  • Creditors Voluntary Administration
  • Liquidation

Best to contact one of our experts to discuss your options.

What if my SBR plan is not accepted?

If your plan is rejected, then the restructuring process is over. While you remain in control of your company, your creditors are able to enforce their rights. Your protection from liability for insolvent trading also ends. Your options now include voluntary administration or liquidation.

What is the cost to undertake SBR?

The fee of the Restructuring Professional for developing the restructuring plan and liaising with Creditors about the SBRP is agreed and fixed up-front.

How do I begin the process?

First you appoint a small business restructuring practitioner who needs to be a registered liquidator. They will act on your behalf during this process and ensure you are compliant with the following:

  • Employee entitlements that are due have been paid, excluding leave and other entitlements not currently due to be paid.
  • Tax lodgements are up to date.