Professional services firm Vincents is encouraging small-to-medium business owners and managers in Queensland to learn more about debt restructuring through their free seminars.
Director Jonathan Dooley said the firm wanted to let business owners know about the possibilities open to them amidst the issues they are facing in the wake of increasing insurance, wages, and other operating expenses.
It is noted that recent statistics by Australian Securities and Investments Commission (ASIC) showed a gloomy outlook for businesses at the start of this financial year, compared with the previous year, with insolvencies in Queensland climbing 47 per cent in July at 145 administrations and liquidations compared to 100 at the same time in 2022 and 95 in 2021.
Meanwhile, national ASIC data showed 820 companies went insolvent in July, which was the worst start to a financial year since 2019.
In response to these statistics, Dooley shared that Vincents is providing education to SMEs about the measures available to them in addressing debt and other cashflow issues.
“Small Business Restructuring (SBR) is a debt restructuring process for small businesses experiencing financial hardship and was introduced by the Federal Government on January 1, 2021,” Dooley explained. “Our team is happy to talk to business owners who might like to understand more about the process and learn if they may be eligible.”
“SMEs are particularly vulnerable to the tough market conditions being experienced after the pandemic, and it is a situation likely to continue into next year,” Dooley added. “While we have always offered turnaround and restructuring solutions, The Australian Federal Government’s introduction of SBR is a good alternative to the more traditional types of external administrations if a small business finds itself in distress.”
Vincents insolvency director Steven Staatz said that while there had been an initial slow uptake in the adoption of SBR since introduced in 2021, he expected these types of appointments to start to dramatically increase given the current economic climate.
“We’ve started offering free SBR seminars across Queensland, with two more lined up in Brisbane for early next year. We want to support business owners at these seminars and help them to take an objective look at their business – whether they just want to prepare for possible downturns or if they are currently experiencing financial distress,” Staatz said. “Operating your own business is challenging yet rewarding, however, in tough economic times, it is helpful to know what type of opportunities are available to you if the need arises.
“We will explore how business owners could potentially benefit from small business restructuring, how to determine if a client is eligible, how they can maintain eligibility, and how to identify business financing opportunities,” Staatz added. “Small businesses with less than $1 million in liabilities may be eligible for the SBR scheme.”
The next Brisbane Small Business Restructuring Seminars will be held on 1 February 2024, at the Kedron-Wavell Club and 21 February at the Glen Hotel, Eight Mile Plains.
