SBR for Small Business Owners : simplebooklet.com

ARE YOU OVERCOME WITH BUSINESSDEBT?Thyge Trafford-JonesWe can help you slash up to 80%* of your debt andkeep you operational with Small Business Restructuring.SMALL BUSINESS RESTRUCTURING PRACTITIONER.*Dependent on your individual circumstances RestructureMySmallBusiness.com.au

Page 3

RestructureMySmallBusiness.com.auTABLE OFCONTENTSF U T URE PR O O F Y O U R B U S I N E S S4F I N A N C I A L H E A L T H C H E C K L I S T5W H A T I S S M A L L B U S I N E S SR E S T R U C T U R I N G ?6T H E B E N E F I T S O F R E S T R U C T U R I N G78W H A T D O E S A P R O P O S A L L O O K L I K E ?R E T A I L9W H A T D O E S A P R O P O S A L L O O K L I K E ?C A B I N E T R Y B U S I N E S S1 0W H A T D O E S A P R O P O S A L L O O K L I K E ?P U B / H O T E LT H E S B R P R O C E S S E X P L A I N E D 13R E S T R U C T U R E M Y S M A L L B U S I N E S S . C O MS B R S P E C I A L I S T S15C O N T A C T U S 161 1W H E N A S M A L L B U S I N E S S R E S T R U C T U R EC A N B E A G A M E C H A N G E R12D E T E R M I N I N G E L I G I B I L I T Y F O R S B R

Page 4

FUTURE PROOF YOUR BUSINESSWITH A SMALL BUSINESS RESTRUCTURE.W H A T I S Y O U R R E A L I S T I C P O S I T I O NG O I N G F O R W A R D ? An all too familiar situation since COVID-19, smallbusinesses have been struggling. They are drowning inoverdue ATO lodgements, rising tax debts, and shrinkingprofits, leaving you feeling stuck and unsure of what to donext.If this resembles your experience, taking action soonerrather than later can unlock the path to turnaround andrenewed success.AFT E R AN HONEST EVALUAT IONTHE QUESTION BECOMES, WHA T'S NEXT?44

Page 5

?FINANCIAL HEALTH CHECKLISTI S Y O U R B U S I N E S S I N F I N A N C I A L D I S T R E S S W I T HM O U N T I N G D E B T S T O C R E D I T O R S & T H E A T O ?A R E Y O U I N A C O M P E T I T I V E M A R K E T A N D C O M P E T I N GO N P R I C E ?D O E S Y O U R B U S I N E S S H A V E O P E R A T I O N A LI N E F F I C I E N C I E S ? I S Y O U R G R O S S P R O F I T L O W E R T H A N B E F O R E ?D O Y O U H A V E C A S H F L O W P R O B L E M S ? I S Y O U R B U S I N E S S S T I L L F E E L I N G T H E E F F E C T S O F T H EC O V I D 1 9 P A N D E M I C ?H A S Y O U R E C E I V E D A D P N O R D E B T R E C O V E R Y N O T I C E ? Are you well-positioned to continueon the current trajectory?Is it time to restructure and find apath to recovery? 5RestructureMySmallBusiness.com.au

Page 6

A GOVERNMENT-BASED INITIATIVESmall Business Restructuring (SBR) is an ATOinitiative designed to help businesses lower yourdebts and develop a plan for recovery within 35business days. F A S T A N DE F F I C I E N TP R O C E S SA streamlined process, typically completedwithin 35-45 business days, ensuring atimely resolution to your financialchallenges.A V O I D D P NL O C K D O W N SAssists you to secure significant discountson core tax debts, especially with the ATO,alleviating your financial burden.U N L O C K T A X D E B TD I S C O U N T SBy working with an SBR expert, you canhelp avoid DPN lockdowns, which couldotherwise freeze assets and halt yourbusiness progress.6

Page 7

RestructureMySmallBusiness.com.auTHE BENEFITS OF RESTRUCTURING1By entering an SBR,directors can manage theircompany’s debts in astructured manner,potentially shielding youfrom personal liability.2Unlike liquidation, whichoften means the end of thebusiness, SBR allows you tocontinue trading whileaddressing your company’sfinancial issues.3Help you reduce your debtobligations by 60-80%,making your debt moremanageable andsignificantly improving youroverall financial health.4SBR provides a pathway toresolve financial difficultieswithout resorting tobankruptcy, which can havelong-term personal andprofessional consequences.7

Page 8

W H A T D O E S A T Y P I C A L S M A L L B U S I N E S SR E S T R U C T U R I N G P R O P O S A L L O O K L I K E ?RestructureMySmallBusiness.com.auRETAIL BUSINESS Uns e c ur e d D e b ts $450,000 total, including$360,000 owed to theATO.ProposalOffered creditors alump sum payment of$90,000.Outcome Creditors accepted theproposal, receiving yourdividend.Business Status Avoided liquidation &VoluntaryAdministration costs,enabling recovery andcontinued operations.DEBT Reduced by $360,000 CREDITORS Received 20c on the dollarBUSINESS OUTCOME– Continued trading– Improved cashflow– Stabilised financial position8

Page 9

W H A T D O E S A T Y P I C A L S M A L L B U S I N E S SR E S T R U C T U R I N G P R O P O S A L L O O K L I K E ?RestructureMySmallBusiness.com.auCUSTOM CABINETRY BUSINESSUns e c ur e d D e b ts $150,000 unsecured;$125,000 owed to ATOProposal$30,000 for unsecuredcreditors, better thanliquidationOutcome Creditors accepted theproposal, businesscontinued withoutsignificant debt, avoidedVoluntaryAdministration.Business Status Supply chain issuesHigher material costsFixed expensesCOVID-19 impactDEBT Reduced by $120,000 CREDITORS Received 20c on the dollarBUSINESS OUTCOME– Continued trading–Avoided VoluntaryAdministration9

Page 10

W H A T D O E S A T Y P I C A L S M A L L B U S I N E S SR E S T R U C T U R I N G P R O P O S A L L O O K L I K E ?RestructureMySmallBusiness.com.auPUB/HOTELUn s e cu r ed D eb t s $280,000 to creditors$200,000 to ATOProposalDirector arranged apayment plan with the ATOand other creditors to repay$40,000 over 10 months.Outcome Creditors accepted theproposal. Unsecuredcreditors receivedscheduled payments. Thebusiness avoided liquidationand VoluntaryAdministration costs,enabling future profitabilityand stability.Business Status COVID-19 lockdowns70% drop in monthly salesHigh fixed and operatingcosts.DEBT Reduced by $440,000 CREDITORS Received approx 8c on thedollarBUSINESS OUTCOME– Continued trading–Avoided liquidation10

Page 11

SCENARIOSSOLUTIONSYou are locked into apayment plan with the ATO,but it's putting pressure onyour company's solvency.SCENARIO 1In both cases, a Small Business Restructure(SBR) can be a strategic solution to improvecash flow, reduce debt, and set yourbusiness on a path for long-term success.Options may include a lump sum payment ora flexible repayment plan based on tradingprofits over a 3-year period, helping tofuture-proof your business.IMPROVE CASHFLOWREDUCE DEBTLONG-TERMSUCCESSYour business is weighed downby legacy and COVID-relateddebts, making it unlikely to seesurplus profits for several years.SCENARIO 2W H E N A S M A L L B U S I N E S S R E S T R U C T U R EC A N B E A G A M E C H A N G E R11RestructureMySmallBusiness.com.au

Page 12

Be currently insolvent or on a clear path toinsolvency. 01Possess total liabilities not surpassing $1 million.02Ensure all tax filings are up to date.03Maintain current status on all employeeentitlements.04Neither your business nor any of its directors shouldhave engaged with the SBR or simplified liquidationprocess in the preceding seven years. 05DETERMINING ELIGIBILITY FOR THE SMALL BUSINESS RESTRUCTURE PROCESSTO Q UALIFY FOR THIS R ESTRUCTURI NG PATH WAY, YOURBUSI NESS MUST MEET TH E FOLLOWIN G CONDI TIONS:1012

Page 13

The process begins when companydirectors decide to appoint us asthe Small Business RestructuringPractitioner (SBRP).The SBRP does a thoroughassessment of the company'seligibility and helps the directorscreate a Restructuring Plan to repaycreditors either partially or in full.This Plan offers a better outcomethan liquidation.If approved, the company continuestrading while the SBRP oversees thePlan’s administration. The Plan mustbe completed within a maximum of3 years.A P P O I N T M E N T O FR E S T R U C T U R I N GP R A C T I T I O N E RC R E D I T O R V O T I N GB U S I N E S S A S U S U A LE L I G I B I L I T YA S S E S S M E N T & P L A ND E V E L O P M E N TP L A N P R O P O S A LT I M E L I N EOnce restructuring begins, thecompany has 20 business days todevelop and submit the Plan tocreditors. During this period, mostsecurity enforcement actionsagainst the company are paused.Creditors have 15 business days toreview and vote on the Plan.Approval requires more than 50%of the unrelated creditors (by value)to support it. THE SMALL BUSINESS RESTRUCTURING PROCESS13RestructureMySmallBusiness.com.au

Page 14

WHY SHOULD YOU APPOINT AREGISTERED SBR PRACTITIONER?For every SBR Plan, a licensed SmallBusiness Restructuring Practitioner(SBRP) must be appointed to negotiatewith the company's creditors, includingtax authorities, to reduce the overalldebt burden. Restructuring Practitioners arespecialists in providing effectivesolutions to avoid insolvency andliquidation.Although SBR is a viable option formany, we are here to help youdetermine the best course of action,taking into consideration not only yourfinancial status but also youroperational efficiencies and personalcircumstances. Creating proposals,although fast and efficient, cansometimes be complex which is why werecommend consulting to assist you indeciding whether your business maybe a good candidate for SBR.SCHEDULE NOW N E E D I M M E D I A T EA D V I C E F R O M A S M A L L B U S I N E S SR E S T R U C T U R I N GP R A C T I O N E R ? 14RestructureMySmallBusiness.com.auO R V I S I T

Page 15

SBR SPECIALISTSOur team has 20+ years of experience with personaldebt solutions and restructuring.SOME OF TH E BU SIN ESSE S W E HAVE HEL PED. ..FASHION RETAILERS – CAFE – LOGISTICS COMPANY – PRODUCTION COMPANY –HAIR SALON – CONSTRUCTION BUSINESS–TOUR OPERATOR – CHILDCARECENTRE – EVENT PLANNER – GYM & FITNESS STUDIO – TRAVEL AGENCY –AUTOMOTIVE BUSINESS – RESTAURANT – CO-WORKING SPACE – BOOKSTORE –TRAVEL PLANNER – WINE BAR – JEWELLER.ME L ISSA DAUB N EYS B R C L I E N T L I A I S O N Melissa is an experiencedsmall business owner withprevious experience insales, her empatheticnature is what endearsclients in distress toMelissa. TH YGE T RAFF ORD J ONESM A N A G I N G P A R T N E RThyge is a RegisteredLiquidator, RegisteredSmall RestructuringPractitioner andRegistered BankruptcyTrustee.15RestructureMySmallBusiness.com.au

SBR for Small Business Owners

Page 1

Page 2